Musk to Buffett: "Buy Stocks of Companies Starting with T"

Answering the question "Where should Buffett invest?" Interpreted as a recommendation to buy Tesla stock

Elon Musk, CEO of Tesla, advised Warren Buffett, chairman of Berkshire Hathaway (Berkshire), who is known as the 'investment genius,' to buy Tesla shares even now.

On the 26th (local time), Musk responded on his Twitter when a user asked, "What stocks do you think Berkshire Hathaway, which holds $128 billion (about 168 trillion KRW) in cash, should buy?" by saying, "Starting with the letter 'T'...." This is understood to mean Musk's company, Tesla, publicly expressing his hope that Berkshire would invest in Tesla.

Elon Musk, CEO of Tesla. [Image source=Yonhap News]

Musk also shared an anecdote about having lunch with Charlie Munger, Berkshire's vice chairman, in 2008. Munger is Buffett's longtime friend and sole business partner.

Musk said, "Around the end of 2008, I had lunch with Munger and discussed an investment of about $200 million in Tesla, but it fell through." At that time, Tesla's market capitalization was only $200 million (about 262.9 billion KRW), but it has now increased 3,000 times to $622.9 billion (818.6151 trillion KRW).

At that time, Berkshire bought 225 million shares of Chinese electric vehicle maker BYD at 7 Hong Kong dollars per share instead of Tesla. It is reported that Berkshire made considerable profits from its investment in BYD.

On the 16th, Munger also compared BYD and Tesla. Attending the American Daily Journal shareholders' meeting, he said about Musk, "He has only created a small miracle in the automobile industry," adding, "I will neither buy nor short Tesla."

When asked, "If you could invest again now, which company would you choose between BYD and Tesla?" he said, "It's very easy," choosing BYD. Munger said, "Tesla cut prices twice last year in China, but BYD raised prices and still increased its market share.