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Charlie Munger, Daily Journal Chairman and Berkshire Hathaway Vice Chairman, shares his thoughts on the short-squeeze frenzy.
CHARLIE MUNGER: And the frenzy is fed by people who are getting commissions and other revenues out of this new bunch of gamblers. And of course, when things get extreme, you have things like that short squeeze. It's not generally noticed by the public, but clearinghouses clear all these trades, and when things get as crazy as they were in the event you're talking about, there are threats of clearinghouse failure.
So it gets very dangerous, and it's really stupid to have a culture which encourages as much gambling in stocks by people who have the mindset of race dog, racetrack bettors, and of course it's going to create trouble as it did. And I have a very simple idea on this subject. I think you should try and make your money in this world by selling other people things that are good for them, and if you're selling them gambling services where you rake profits off the top like many of these new brokers who specialize in luring the gamblers in, I think it's a dirty way to make money, and I think we're crazy to allow it.