Tesla Founder: "I'm not a die-hard fan of Buffett, but his work is indeed important"

Tesla and SpaceX's founder and CEO, Elon Musk, stated in an interview last week that he is not a die-hard fan of Warren Buffett, but acknowledges the importance of Buffett's work, even though it may be boring. However, Musk also emphasized that society should have fewer people like Buffett engaged in finance and law, and more people involved in production and innovation.

Buffett's Work Is Boring, But Important

During last Thursday's "The Joe Rogan Experience" Podcast, Elon Musk and host Joe Rogan discussed different types of billionaires, with Buffett becoming the focal point of the conversation. Rogan pointed out that some people make money by "designing fantastic products," while others make money by "investing in companies or trading in the stock market." Elon Musk falls into the former category, while Buffett clearly falls into the latter. In response, Elon Musk indicated his lack of interest in Buffett's work:

"Take Buffett, for example – honestly, I'm not his biggest fan. But he's done a lot of capital allocation, he's read a lot of annual reports and accounting, which is really boring."

Elon Musk described Buffett's work as an investor trying to figure out "whether Coca-Cola or Pepsi is worth more capital." (Berkshire Hathaway owns 9.3% of Coca-Cola Company.)

Despite the mundane nature of such work, Elon Musk emphasized its importance:

"If you ask me, I'd say that's a boring job, but it's still an important thing. For example, which company deserves more capital investment? Should the company grow or expand? Is the company's service or product better or worse than others? If a company produces a remarkable product or service, it should get more capital; if not, it should get less."

However, Elon Musk admitted that there is an overallocation of talent in finance and law, especially in today's society, particularly in the United States. He believes there are too many smart people entering the fields of finance and law, and society should reduce the number of people engaged in legal and financial work and have more people involved in product innovation and manufacturing. Elon Musk pointed out that manufacturing, especially in the United States, has shifted from a high-value job to an undervalued one.

Billionaires Under Fire

Furthermore, Elon Musk told Rogan that he believes being a "billionaire" has become a derogatory term, as if being a billionaire is a bad thing.

Elon Musk's statement seems to resonate with reality. In recent times, the wealth gap has been widening in countries worldwide, including the United States, leading many to question whether billionaires should even exist. Since the global spread of COVID-19, billionaires, including Musk, have been criticized for their lack of tangible actions and charitable behavior.

As for Buffett's views on Elon Musk, although he mentioned in an interview last year that Musk has room for improvement, he also acknowledged Elon Musk as a remarkable individual during a 2018 CNBC interview when discussing Tesla.

"He's working to improve products, and for that, I salute him. The American public will determine his success, which is not easy."

Source

Related Readings

• Elon Musk Tweets: Tesla Stock Price Is Too High, Give People Freedom!
• Decision Mistakes Lead Berkshire to Lose 50 Billion: "Buffett Risks Reputation by Missing Bitcoin"
• Applicable to the Crypto World? Buffett's Investment Advice for Young People: Understand Accounting, Focus on Quality Companies

Join Telegram now for the most comprehensive information on Fintech, Blockchain updates, and industry examples!