Hello everyone, and welcome back to Investing with Antoaneta. As always, I’m going to ask you to give the blog a thumbs up and share it with your friends if you like my content. Every little bit helps with the algorithm, and I really love seeing new faces pop up in the comments section.
So, today, I’ve got another short interview compilation for you, this time, with Buffett and Munger. We’re going to have a look at why exactly they dislike Tesla, and I’ll let you decide whether you agree with their investing model or not. Again, I just want to remind you that there is not just one single investing strategy out there. Buffett and Munger do things in a specific way because they’ve found that it works for the businesses that they believe in. My own investing strategy also borrows a ton of stuff from their approach. However, this doesn’t mean that their way is the only way. Check out my other blogs such as, “Is An Overvalued Amazon Without Bezos Still A Buy?“.
Buffett And Munger Opinion About Tesla
Tesla and Elon Musk are all over the place. And, no, not just on YouTube. Musk and his company get news coverage and social media buzz. A single move on his part is capable of igniting never-ending forum discussions, and, of course, most tech investors follow him closely. And while the investing community is pretty divided over Tesla and its prospects, Buffett has taken a firm stance against putting his money into the company.
He even went as far as to say that Apple investing in Tesla would be a “very poor decision”. And yes, yes, I know that he added the whole bit about how the “auto business is not an easy business”. In my opinion, that was just a deflection because, at the end of the day, there’s no reason for him to say negative things about Musk.
And do you know what’s funny? Even though Buffett holds zero Tesla shares, he still couldn’t avoid getting questioned about his stance. You could say that it comes with the territory. He is, after all, the single most famous long-term investor of our times.
But this blog is not about speculation, so enough about what I think. Instead, I’ll leave you with a couple of interview clips.
So, basically, it’s all down to the strategy and the way of looking at things. As I mentioned last time in our Warren Buffett & Tech video, Buffett likes stability and safety. They like to be able to “expect” specific results and to know that they’re almost guaranteed to receive them because … that’s just how the market or the specific field functions. And, when you’ve got a company led by someone like Musk, which continually tries to do things that he “isn’t supposed to be doing”, it’s only natural that they are not going to be overly optimistic about the whole ordeal.
At the end of the day, it all boils down to this:
- Long-term investing is about stability and reliability
- Innovation disrupts the markets
- Disruption creates a lot of opportunities, but it also makes the situation unpredictable.
- Being a long-term investor, Buffet doesn’t like unpredictability.
And, despite how much I respect Buffett and his opinions, I don’t think that there’s any reason for me to be worried. I’m also a big believer in Tesla, and I’m confident that innovations are going to happen, whether we like it or not. So, I’m going to keep doing my thing. Not because I “disagree with Buffett”, but because I’ve done my research, and I think that this is the way to go for me, personally.
Remember – you should never base your investing decisions on someone else’s opinions. That’s a shortcut to disaster. If you decide to buy or sell out of Tesla (or any other position, really), always make sure that you’re doing it because you, personally, believe that this is the way to go.
And that’s all I’ve got for you today. I hope you enjoyed this blog regarding Tesla, and if you did, please don’t forget to let me know by hitting the like button and sharing it with your friends. Oh, and why not drop me a line in the comments section and share what you think about this whole ordeal? Is Buffett right? Or is his strategy doomed to become “outdated” a dozen years from now?
For more of the same, go ahead and check out our Private Investing Group. We’ve got a ton of exclusive content, a bunch of e-books and courses (100% free for members!), and a live chat for real-time questions and answers. As usual, I’ll leave the link in the description below.
Thank you all for reading, and until next time!
Recommended for further reading:
- The Lean Startup: How Constant Innovation Creates Radically Successful Businesses
- Business Adventures: Twelve Classic Tales from the World of Wall Street
- The Snowball: Warren Buffett and the Business of Life
- The Simple Path to Wealth: Your road map to financial independence and a rich
- The Business Book: Big Ideas Simply Explained