In the latest, Warren Buffett said that Elon Musk is trying to improve a product and he salutes him for that.
Warren Buffett and Elon Musk have suddenly started trolling each other. It all began when Warren Buffett, the CEO of Berkshire Hathaway offered some advice to Elon Musk, the CEO of Tesla on Saturday 5th May 2018, when the 2018 Annual Berkshire Hathaway meeting was held. The advice was to “Stay away from See’s Candies.” The Oracle of Omaha said this while answering a question of a shareholder about whether he agreed with Elon Musk’s views about so-called ‘economic moats’ or not.
The term ‘Moats’ that was used by Warren Buffett was coined in 1999 Fortune Magazine article while referring to Berkshire Hathaway’s competitive advantages. However, Musk had rejected the concept of moats saying, “I think that moats are lame. They are like good in a type of quaint, vestigial manner. If the only defence you have against an attacking army is a moat, we will not last that long. What matters is the speed of innovation is the basic determinant of competitiveness.”
Thereafter, Warren Buffett followed by saying, “Certainly, you should work on improving your own moat and you should defend your own moat all the time. Elon can change things upside down in certain areas. You do not want to take them on in candy business.”
However, on Monday, in an interaction with CNBC, Buffett tried to calm things down. Buffett said that Musk is trying to improve a product and “I salute him for that.”
China-US trade war
Buffett said he does not believe in the US having a trade war of significance with China. Buffett said China and the US have a “common interest” in avoiding trade war. He also said there will always be those seeking unfair trade advantages, but “the world will not do something stupid”
In today’s interaction, Microsoft founder and CEO Bill Gates was also present along with Warren Buffett and Berkshire Hathaway’s Vice Chairman Charlie Munger.