Elon Musk’s Unexpected Response After Warren Buffet Divested Apple Shares
Jakarta, CNBC Indonesia – Elon Musk commented on Warren Buffet who recently sold his shares in Apple. Musk said that Buffet should buy Tesla shares.
“He should take a position in Tesla. This is an obvious move,” Musk tweeted about Buffett, responding to a tweet suggesting Berkshire Hathaway should sell its entire stake in Apple for US$135 billion and buy Tesla instead.
The comments came a day after Berkshire Hathaway’s annual shareholder meeting, where the company revealed that it had indeed cut some of its stake in Apple by around 10%.
But Musk’s dream of having Berkshire Hathaway give Tesla a nod and buy his shares may never come true.
That’s because comments made by Buffett and the late Charlie Munger previously did not cast a positive light on the ultra-competitive auto industry.
Buffett and Munger are known to be no strangers to investing in electric vehicle manufacturers. Because Berkshire Hathaway acquired 10% of BYD shares in 2008, so anything could happen, as quoted by Business Insider, Tuesday (7/5/2024).
But despite the success of their BYD investment, Buffett and Munger said at Berkshire Hathaway’s 2023 annual shareholder meeting that investing in the auto industry was too difficult.
“Charlie and I have long felt that the automotive industry is too difficult. It’s just a business that has a lot of competitors all over the world. They won’t give up. And it seems like there’s always a winner in any business, but that doesn’t get you a permanent place,” said Buffett at that time.
“I think I know where Apple will be in the next five or ten years. I don’t know what will happen to the car companies in the next five or ten years,” Buffett added.
This sentiment was supported by Munger, who said that although electric vehicles are experiencing rapid growth, they also have large capital costs and risks.
“This creates huge capital costs and huge risks, and I don’t like huge capital costs and huge risks,” Munger said.
Source : CNBC INDONESIA
