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Robinhood fired again at Berkshire Hathaway vice chairman Charlie Munger, who earlier this week mentioned the free-trading app was having a “regrettable” impression on traders.

The longtime enterprise associate of Warren Buffett on Wednesday addressed the running controversy over Robinhood and related functions, noting risks from the attract of simple, free buying and selling.

“Nobody ought to consider Robinhood trades are free,” Munger, 97, mentioned. “The frenzy is fed by people who find themselves getting commissions and different revenues out of this new bunch of gamblers.”

He added that the app has created “a tradition which inspires as a lot playing in shares by individuals who have the mindset of racetrack bettors. … It is a soiled manner of creating wealth.”

A press release Thursday from a Robinhood spokesman took sharp exception to the remarks.

“In a single fell swoop a whole new era of traders has been criticized and this commentary overlooks the cultural shift that’s going down in our nation at present,” the assertion mentioned. “Robinhood was created to permit individuals who do not have entry to generational wealth or the sources that include it to start investing within the U.S. inventory market. To recommend that new traders have a ‘mindset of racetrack bettors’ is disappointing and elitist.”

Each commentaries referred to a latest groundswell amongst retail traders who’re combining the comfort and free trades of Robinhood with viral platforms supplied by social media, notably the Reddit message boards.

In essentially the most evident instance, investors have piled into GameStop, a closely shorted inventory that has seen its value explode greater in latest weeks amid a surge in Robinhood-based trades that created a large brief squeeze.

Although the hypothesis has created intense market volatility, Robinhood asserted that its product is offering alternative.

“It must be celebrated that we’re seeing market traders start to diversify, and that training and consciousness in regards to the values of investing are diffusing additional into beforehand untapped generations,” the assertion mentioned.

Munger is not the one Robinhood critic – others have accused it of turning inventory buying and selling right into a harmful sport, from which it advantages by means of payment for order flow, or the cash that market makers give the corporate for buying and selling quantity.

“Nobody ought to consider Robinhood trades are free,” Munger mentioned. “The frenzy is fed by people who find themselves getting commissions and different revenues out of this new bunch of gamblers.”