Elon Musk suggests Warren Buffett buy Tesla stock, but Buffett unlikely due to different investment styles.

From CNBC: 2024-05-12 13:10:00

Elon Musk advised Warren Buffett to invest in Tesla after Berkshire Hathaway reduced its Apple position. However, Buffett’s investment style focuses on easily understandable, steady businesses for long-term holds. Tesla’s multitude of futuristic ventures and unpredictable future make it an unlikely choice for Buffett, despite its brand loyalty. Tesla’s current stock struggles point to a future beyond EVs, suggesting potential long-term growth.

Berkshire Hathaway’s investment success under Warren Buffett stems from his strategy of investing in stable, easily understandable businesses. Buffett’s largest position, Apple, reflects his preference for strong brand loyalty and consumer popularity rather than cutting-edge technology. While Tesla’s loyal customer base aligns with Buffett’s preferences, the company’s complex vision for the future and uncertain focus areas make it an unlikely investment choice for the renowned investor.

Investing in Tesla could offer long-term potential given Elon Musk’s visionary leadership, despite current challenges. Meanwhile, Berkshire Hathaway’s future under successor Greg Abel is expected to maintain Buffett’s investment philosophy of compounding returns from solid, comprehensible businesses. Tesla’s evolving focus beyond EVs contrasts with Buffett’s preference for straightforward investments, making it unlikely to be a part of Berkshire’s portfolio in the foreseeable future.



Read more at CNBC: Elon Musk Says Billionaire Investor Warren Buffett Should Buy Tesla Stock. Here’s Why He Absolutely, Positively Won’t.