CEO Elon Musk made a pitch to invest the Warren Buffett-led company’s cash reserves. He was responding to a trader’s tweet seeking his opinion on the stocks with more than $128 billion in cash held by Berkshire.
Musk followed this with a tweet in which he said that Charlie Munger had an option to invest in Tesla at a valuation of around $200 million when the two had lunch together about 15 years ago. Munger is Buffett’s believed lieutenant and second-in-order at Berkshire in his ability as bad habit director.
This is not the first time Musk is referring to the incident between him and Munger. Responding to a tweet in February 2022, the Tesla CEO said he had lunch with Munger in 2009 when Munger spoke about Tesla’s failure. Agreeing with Munger on the potential failure, Musk bluntly stated that it was worth trying anyway.
Elon Musk’s meeting with Munger apparently took place before Tesla’s IPO on 29 June 2010 as per the previously mentioned timeline. Tesla has risen in the ranks since then and currently has a market capitalization of around $623 billion. One mega-cap company is Tesla bull Cathy Wood, who expects the stock to reach $500 by 2026, up from the current $196.88, considering only the EV part of the Tesla story.
He said the stock could reach north of $1,500 if the autonomous ride-hailing opportunity is also accounted for. US Planning to invest in bonds. Planning to invest in bonds.
Those planning to invest in bonds will bear the burden of treasury bills. He also suggested that the company not indulge in any activity that may result in cash requirement at inconvenient times including financial panic and unprecedented insurance losses.
Buffett’s philosophy has always been to buy value and hold those investments for the long term. While Berkshire itself doesn’t pay dividends, a significant portion of its investment holdings do pay dividends so it remains to be seen whether Tesla will cut into Buffett’s investment.
Tesla CEO Elon Musk and legendary investor Warren Buffett may disagree about the long-term value of cryptocurrencies, but they share similar principles when it comes to investing in the stock market.
Musk, Earth’s richest man according to the Bloomberg Billionaires Index, offered some investment advice in a tweet on Sunday: Because I’ve been asked a lot: Buy stock in the many companies that make products and services you believe in only if Sell when you think their products and services are underperforming, don’t panic when the market does.”
The tweet echoes the principles of value investing made famous by Buffett who is currently the sixth richest person in the world. With value investing you only buy shares of companies that have a business model you believe in and Understand ideally these companies are undervalued and have the potential to provide high income over the long term.
Value investors look for deals based on their own research into the intrinsic value of a company, they don’t follow market trends or short-term stock movements. For Musk, Twitter is probably a value investment based on this logic, because The company’s board recently accepted his offer to buy the company for $44 billion.
He said he wanted to unlock the social media website’s tremendous potential in a statement announcing the deal. In the tweet, don’t panic when the market does. Elon Musk echoed one of Warren Buffett’s most famous quotes, of the crowd About not chasing, even when the market is down: Be greedy, fearful when others are fearful and fearful when others are greedy.
In March, Musk also tweeted that in times of high inflation it is better to have physical things like a house or stock in those companies than to keep my money in cash. I own Doge and I will not sell.
At the Berkshire Hathaway annual shareholders meeting on Saturday, Buffett who once dismissed bitcoin as probably rat poison off Elon Musk said he still would not invest in the cryptocurrency despite growing acceptance that it is not a productive asset. And it doesn’t make anything concrete.
While Elon Musk and Buffett may disagree on the long-term prospects of crypto, Musk in a previous tweet warned people against betting the farm on crypto, saying that creating products of true value and helping our partners do the same They do provide services to humans and do not give money in any form.
On Sunday, Tesla CEO Musk tweeted that it is generally better to own physical things like a house or stock in those companies than to keep your money in cash in times of high inflation. Relates to the investment advice given by Hathaway CEO Buffett.
At the end of the Great Recession in 2009, Buffett told Berkshire Hathaway’s annual shareholder meeting that one of the best ways to hedge against inflation was to be part of a wonderful business. That’s because whatever happens to the dollar’s value is part of the business.
He used his own investing as an example: If you own The Coca-Cola Company, you will get a fixed share of people’s labor for your product 20 years from now and 50 years from now, and no No matter what happened to the price level people will still pay for the products they like.
Inflation continued to rise during the winter season. US consumer prices rose 7.9% year-over-year, the biggest jump in 40 years. Rising gas prices lead the way, followed by hotels, rental cars and furniture.
The higher the inflation rate, the faster the cash loses its value. On the other hand, investments generally grow over time, which is why during periods of high inflation both Musk and Buffett recommend investing in strong companies whose shares are likely to appreciate.
Instead, many experts, including Buffett, recommend investing in low-cost index funds that are less volatile but still take advantage of market growth. And because these funds hold every stock in an index, they’re automatically diversified. In fact, the S&P 500, which includes companies like Amazon, Apple, and Microsoft, has beaten inflation for years. Buffett said in 2017 that the S&P 500 consistently Buy the P 500 Low-Cost Index Fund.