For instance, billionaire investor Chamath Palihapitiya said that SPACs make the process of initial public offering less daunting. In an interview last October, Chamath said “In a traditional IPO you can’t show a [financial] forecast and you can’t talk about the future of how you want to do things, you’re just not allowed.”
Charlie Munger Criticizes GameStop Investors
Munger had also commented on the GameStop (NASDAQ: GME) frenzy. The billionaire described GME traders as “racehorses” gamblers.
“That’s the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would bet on racehorses,” Munger said.
“The frenzy is fed by people who are getting commissions and other revenues out of this new bunch of gamblers. When things get extreme you have things like that short squeeze. It’s very dangerous and it’s really stupid to have a culture that encourages as much gambling in stocks by people who have the mindset of racetrack bettors. Of course, that is going to cause trouble, as it did.” He added.
