Charlie Munger says novice investors are getting lured into a bubble in ‘dirty way’ by Robinhood

by  on  in Investor

Charlie Munger

Lacy O’Toole | CNBC

Charlie Munger, vice chairman of Berkshire Hathaway and Warren Buffett‘s longtime business partner, issued a dire warning on the manic momentum-driven trading activity by amateur investors and said commission-free trading apps like Robinhood were partly to blame for the bubble.

“It’s most egregious in the momentum trading by novice investors lured in by new types of brokerage operation like Robinhood and I think all of this activity is regrettable,” Munger said Wednesday at the Los Angeles-based Daily Journal annual shareholders meeting, which was livestreamed by Yahoo Finance.

The 97-year-old investor said retail traders

… Read more

‘Big Short’ investor Michael Burry says the stock market is ‘dancing on a knife’s edge’ – and fears he’s being ignored again

by  on  in Investor

Christian Bale as Michael Burry in “The Big Short.”

The Big Short/Netflix


  • Michael Burry sounded the alarm on the stock market over the weekend.
  • The “Big Short” investor said extreme speculation and debt could cause a crash.
  • Burry said his warnings were being ignored as they were during the housing bubble.
  • Visit Business Insider’s homepage for more stories.

Rampant speculation and widespread betting with borrowed money have driven the stock market to the brink of collapse, Michael Burry said over the weekend.

“Speculative stock #bubbles ultimately see the gamblers take on too much debt,” the investor tweeted along

… Read more

California investor who donated nearly $1M to Trump inauguration sentenced to 12 years in prison

by  on  in Investor

A Federal Judge in California on Thursday sentenced a venture capitalist who donated nearly $1 million to former President Donald Trump’s inaugural committee to 12 years in prison for falsifying records to hide his work as a foreign agent while lobbying high-level U.S. officials.

Imaad Zuberi was also fined $1.75 million and ordered to pay $15.7 million in restitution.

Zuberi, 50, agreed to plead guilty in 2019 to tax evasion, filing false foreign agent registration records and providing almost $1 million in illegal campaign contributions to various presidential election campaigns and other candidates for elected office, according to the U.S.

… Read more

From stocks to bitcoin, Wilmington’s Meghan Shue sees troubling trend

by  on  in Investor

As a record amount of money flows into the market, Wilmington Trust’s Meghan Shue sees a troubling trend.

Shue, who oversees almost $136 billion in assets, is concerned retail investors are rushing into stocks and cryptocurrencies that are high risk and offer few benefits — if any at all.

“It’s a little bit of chasing returns in the wrong areas. It’s also a little bit of chasing what’s already happened,” the firm’s head of investment strategy told CNBC’s “Trading Nation” on Friday. “One thing we have to be careful of is not to extrapolate what we’ve seen over

… Read more

Shell says its oil production has peaked and will fall every year

by  on  in Production

The Anglo-Dutch company said in a statement on Thursday that it expects its oil production to decline by between 1% and 2% each year after peaking in 2019. Its total carbon emissions likely peaked in 2018, it added.
Shell unveiled plans in September to become a net zero emissions business by 2050 (including from its own products and those that it sells), joining European rivals BP (BP) and Total (TOT) in making a shift towards clean energy.
The oil giants have written off billions of dollars of assets, spurred on by forecasts that global oil demand
… Read more