Tesla CEO Elon Musk recently expressed a recommendation for investment magnate Warren Buffett through social media, suggesting that he shift his funds to invest in Tesla. In response to a comment from a netizen, Musk pointed out that this is a wise and obviously correct decision. His statement was in response to the view of another social media user who had suggested that Buffett should stop investing in Apple and instead purchase Tesla stock.
Warren Buffett’s Berkshire Hathaway reduced its stake in Apple in the fourth quarter of 2023, selling more than 10 million shares, involving an amount of $1.822 billion. According to the public quarterly financial report, as of the end of the first quarter of this year, the market value of Apple shares held by Berkshire Hathaway was about $135.4 billion, down from $174.3 billion the previous quarter, but Apple still remains the company’s largest holding. Buffett explained that the decision to reduce Apple shares was mainly for tax considerations and not based on the valuation of the company.
In terms of his attitude towards investing in the electric vehicle industry, Buffett has publicly stated that although he is optimistic about the disruptive impact of electric vehicles on the entire industry, he cannot predict which car manufacturer will be able to stay at the top of the industry in the long term. Even those companies leading the electric vehicle trend may not maintain their lead. Buffett believes that he has confidence in foreseeing Apple’s development over the next 5 to 10 years, but he cannot make the same predictions for the automobile industry.
Despite Buffett’s cautious stance on the future of the electric vehicle industry, he is a long-term supporter of another well-known electric vehicle manufacturer, BYD. He mentioned that when deciding to invest in BYD and Costco, his long-term partner Charlie Munger strongly supported him and provided the right investment advice at the crucial moment. Buffett also compared another investment in Japan, indicating that they had swiftly invested in five Japanese trading companies, which were more rare overseas investments for them.
Musk’s advice to Buffett, as well as Buffett’s assessment of companies and investment opportunities, both reflect the unique insights and strategic thinking of the two entrepreneurs and investors regarding current and future business trends.
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