JULIA LA ROCHE 00:00
Richard Lewis from Culver City, California. He asked, Charlie last February, you spoke about the wretched excess in the financial system. Given the developments over the past year, could you give us an update on your assessment of wretched excess in the system? Where does it appear most egregious?
CHARLIE MUNGER 00:26
Well, it’s most egregious in the momentum trading by novice investors lured in by new types of brokerage operations like Robinhood. And I think all of this activity is regrettable. I think civilization would do better without it.
You’ll remember that when the first big bubble came, which was the South Sea bubble in England back in the 1700s, it created such havoc eventually when it blew up that England didn’t allow hardly any public trading and securities of any companies for decades thereafter. It just created the most unholy mess.
So human greed and the aggression of the brokerage community create these bubbles from time to time. And I think wise people should just stay out of them.