Robinhood and the New Reality

When Charles Munger isn’t busy bashing Bitcoin, he’s bashing other new methodologies such as Robinhood.

He Is delighted that the share price of Robinhood is crashing.

Clearly Charles Munger doesn’t like Robinhood.

Why?

Is it because the members of Robinhood can communicate in order to put the kibosh on a scam that they see developing on Wall Street?

For example, when regular people thought that Wall Street hucksters were shorting GameStop, they got together and started buying up GameStop in order to drive the price up.

Many of these short sellers were forced to cash in and take their lumps.

In other words they lost a lot of money.

This bothered Charles Munger.

Apparently it still does.

Never mind the fact that Charles Munger‘s friends found a way to stop Robinhood investors from continuing their game.

You see, in Charlie’s world, it’s heads he wins, and tails you lose.

After all, he’s a Harvard graduate. His partner, Warren Buffett, is a Wharton School graduate. This is the natural order of the world. They must win.

The Robinhood investors upended that world order.

After Charlie gloated about the falling price of Robinhood, his partner, Warren Buffett, chimed in and said that Wall Street was a casino.

Are you kidding me?

Wall Street has been a casino for a long time, nearly the entire time that Warren Buffett and Charles Munger made their billions.

I get it though.

Warren Buffett thinks that people should invest and make money the way he and Charlie did.

They call it value investing. Instead of playing the roulette wheel, you do research in a company in order to ferret out an undervalued company, invest, and hold.

Here’s the problem with their argument.

Regular people don’t get the same information that Warren Buffett and Charles Munger do.

By virtue of their Ivy League connections, Warren and Charlie receive information that other people don’t have the opportunity to access.

Warren and Charlie can know either directly or indirectly if a particular CEO is physically ailing.

They can also know if one of the top five accounting firms is getting ready to audit another company.

They hear about irregularities at the cocktail parties.

Because they own large companies, they may have members on their Board of Directors who also sit on the boards of other companies. Therefore they can receive information even though they are not supposed to receive that information.

People talk.

I’m not saying that what they are doing is wrong. I am only stating a reality.

In essence, Warren and Charlie get inside information that other people do not.

This gives them a huge advantage.

Additionally, when Warren and Charlie buy a piece of a company it usually gives them the opportunity to control that company.

When you or I buy a stock, we are along for the ride.

Consequently, the average investor is looking for a way to have more control than his share would normally permit.

This entails shareholders communicating with each other so as to effectively vote as a block much like a union would do.

Robinhood and the Internet facilitated such block voting.

Thus, we live in a world where your average investor can team together with other average investors to exercise much power.

This is what bothers Charles Munger.

Just as your corporate boss from the 1950s feared unions, Charles Munger and Warren Buffett fear the unionized investor.

In the case of GameStop, the unionized investors weren’t gambling so much as they were sending a message to Wall Street which was: “We like this company. We think this company deserves the opportunity to restructure itself.”

You see, it was the institutional investors, the hucksters on Wall Street who were gambling by selling short on GameStop.

They were the cowboys in the wild west sitting at the poker table. And on that particular day, they lost.

That’s what Charles Munger doesn’t like.

He and his kind aren’t supposed to lose.

But he did.

Sincerely,

Archer Crosley

Copyright 2022 Archer Crosley All Rights Reserved

Quit While You’re Ahead, Charlie

It doesn’t seem like Charles Munger, the billionaire, is smart enough to go away.

Now you would think that someone who is a billionaire would be smart enough to walk away while he’s ahead, especially when he’s 98 years old.

But he’s not.

Since he’s not, we should take advantage of the opportunity that he’s giving us.

Charles Munger says a lot of stupid things.

His most recent stupid statement is that much of the criticism of billionaires is driven by envy.

I can’t speak for everyone else; I’m sure there are a few people who criticize him because they are jealous.

Speaking for myself though, I’m not angry with Charles Munger because he has more money than I do.

I don’t have any problem with people having a few more bucks than me.

My beef with Charles Munger and many other billionaires is that they contribute so little in proportion to the exaggerated wealth they possess.

They say a lot of stupid things, and they do a lot of stupid things.

Moreover they made their billions by taking advantage of the system in order to steal wealth from regular Americans.

They did it with the aid of their Ivy League chums. Munger of course is Harvard scum. His partner Warren Buffett is Wharton School scum.

Their wealth is built upon the backs and stolen wealth of regular people.

Munger’s generation and a good piece of my generation are particularly culpable.

These modern day robber barons destroyed the America that was, the America that gave the American dream to many Americans.

He and his kind – people like Mitt Romney, Carl Icahn, the motherfuckers at Bain Capital, and his pig-shit friend Warren Buffett, helped along by other Ivy League scum-meisters like Michael Milken at Drexel Burnham Lambert – were able to buy up small regional businesses, American institutions, businesses that provided security and well-paying jobs, including retirement packages for many Americans.

They shut down those businesses, sold the parts and inventory, then shipped the jobs off to China where they could reap a fortune off cheap labor.

This is how these motherfuckers got so rich.

The big losers were the American people.

The highway robbery of these billionaires caused many people to turn to the government for assistance in healthcare and housing. This in turn jacked up our taxes.

Do you see all the homeless people out there? Many of these people had well-paying jobs or came from families whose parents had well-paying jobs before these billionaires took them away.

When the breadwinner’s well-paying job was taken away, all sorts of social ills arose. There was increased drug use, increased divorce, and increased crime.

Do you see all the students with crushing student loan debt? In the old days their parents had the money to pay for their college education. When those well-paying jobs were taken away those students had to resort to government loans. Because the government was loaning money so freely the schools jacked up the cost of the tuition in order to build useless buildings that profited those same billionaires who built those buildings.

These billionaires set into motion on steroids this idea that there was an indispensable class of investor-leaders who are entitled to make huge profits.

This was helped along by the media that they own and control that continually praised them as the best in the brightest because they attended schools like Harvard and the Wharton School.

Accordingly they awarded themselves huge salaries, huge compensation packages, and huge golden parachutes.

Their Iy League chums in Congress sat back and did nothing as these billionaires consolidated one industry after another into unworkable monopolies.

We became a totalitarian state run by corporations and crony capitalists.

The apotheosis of this greed was Marissa Mayer of Yahoo who was given $264 million as a retirement package for doing an average job for five years.

What have these hundred-millionaires and billionaires given back?

The underlying idea behind awarding them so much money is that they as smart people are going to do even more wonderful things for society.

So where’s the beef?

What have they produced besides fancy yachts?

I’m waiting.

What has Charles Munger produced other than his silly statements?

Well, he trashes cryptocurrency on a regular basis. That’s a starter.

How does that benefit us?

Cryptocurrency was invented as a response to the runaway fiat currency that was printed up in order to benefit crooks like Munger and Buffett.

Thanks to Charles Munger, cryptocurrency is unable to advance anywhere.

Isn’t it strange that we have rampant inflation everywhere, but not in cryptocurrency.

How is this possible?

It’s possible because Charles Munger and his kind keep trashing it.

They understand it as the threat that it is to their kleptocracy.

It’s been quite a run for Charles Munger and Warren Buffett, and it’s high time that it ended.

Do I think that because I’m envious?

No, I’m not envious of Charles Munger.

I’m angry.

Sincerely,

Archer Crosley

Copyright 2022 Archer Crosley All Rights Reserved