Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk seems to be hung up on the fact that billionaire investor Warren Buffett has given the electric vehicle giant’s stock a pass.
Musk occasionally reveals his distress through his posts, particularly when someone praises Buffett’s investment prowess.
The billionaire and philanthropist is the chairman and CEO of Berkshire Hathaway, Inc., which is an investment holding company. The firm invests in two ways – buying companies outright, which become its portfolio companies, and purchasing stakes in companies.
Commenting on a post by a user on social-media platform X, formerly Twitter, Musk said “He [Warren Buffett] could’ve invested in Tesla when we were worth basically nothing and didn’t.”
This was in response to the user’s post which provided some statistics about Buffett’s achievements and suggested that to get rich, one has to follow five of his smartest investment techniques.
The investment techniques he highlighted included “timing the market,” “buying when others are fearful,” “focusing on value,” “possessing a steely resolve” and “buying only what you understand.”
Replying to Musk’s post the user said, “The greatest entrepreneur ever + (one of) the greatest investors ever would be quite the duo.”
Musk said earlier this year that Charlie Munger, Buffett’s trusted lieutenant, had the option to invest in Tesla about 15 years ago when the company’s valuation was around $200 million. In February 2022, Musk said when he and Munger met over lunch in 2009 the Tesla CEO encouraged him to invest in the EV maker. Instead, Munger discussed all the ways the company would fail.
The Buffett-Munger duo may have had a change of heart since then. At Berkshire’s annual shareholder meeting held in May 2023, they praised Musk as talented and brilliant. This set off rumors that the famed investor might consider picking up a stake in Tesla.
Tesla investor and Future Fund Managing Partner Gary Black said, at that time, that Buffett is unlikely to consider Tesla as an investment option. Buffett is known for his value investing – a strategy that focuses on stocks trading below their intrinsic value. Tesla, meanwhile, is a growth stock trading at an elevated P/E multiple.
“At 48x P/E stock has a lot of risk. Growth investors are willing to take that risk. Value investors don’t,” Black said in early May.
At last check on Thursday, Tesla shares were trading lower by 0.5% at $224.37, according to Zenger News Pro data.
Produced in association with Benzinga
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