Berkshire’s Munger: High-Frequency Trading ‘Basically Evil’

Charlie Munger, Berkshire Hathaway vice chairman, shares his insights on the markets, and explains why he thinks bankers

Charlie Munger, Berkshire Hathaway vice chairman

Events in Europe are a great example of bankers gone wild and you simply can’t trust them, said Warren Buffett’s right-hand man Charlie Munger. Munger was also extremely critical of high-frequency trading.

“I think the long term investor is not too much affected by things like the flash crash. That said, I think it is very stupid to allow a system to evolve where half of the trading is a bunch of short term people trying to get information one millionth of a nanosecond ahead of somebody else,” Munger said.

“It’s legalized front-running. I think it is basically evil and I don’t think it should have ever been allowed to reach the size that it did,” he said. “Why should all of us pay a little group of people to engage in legalized front-running of our orders?”

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