At the annual meeting of Berkshire Hathaway shareholders this weekend, Buffett questioned the wisdom of a Tesla insurance product, which Musk plans to launch soon.
Warren Buffett: I would bet against Tesla insurance
Buffett, whose net worth exceeds 89 billion dollars, says that insurance is a scam difficult to penetrate. As a result, he expressed skepticism that Tesla could gain strength in the competitive industry.
"It's not an easy business," Buffett told shareholders (via CNBC). "The success of automobile companies in the insurance business is probably as likely as the success of insurance companies in the automobile business."
"I would bet against any company in the automobile business [getting into insurance.] I'm much more worried about the Progressive. "
It should be noted that one third of Berkshire Hathaway's businesses are safe, including Geico, its wholly-owned subsidiary.
So it's not surprising that Buffett is talking to a potential competitor.
Elon Musk Fires Back: Warren says he should buy Tesla
Elon Musk reacted to the displeasure by joking that Buffett secretly loves Tesla.
The hilarity broke out after Musk tweeted a link urging his followers to order the Tesla Model 3, which he says is cheaper than a Honda Accord.
Then, Musk followed a playful tweet that claimed that Tesla is "also 1,000 more fun" than a Honda Accord. He joked that "that's a direct quote from Warren Buffett."
That caused a series of comic responses, including Warren Buffett's funny memes like the one shown below.
– Crypto₿irb (@crypto_birb) May 4, 2019
Musk, who fought the SEC for his tweeting, responded with good humor to several questions, including one that asked him when he planned to launch a candy company.
"Candy is coming," Elon said cheerfully.
Candy is coming ?
– Elon Musk (@elonmusk) May 5, 2019
Buffett: Elon Musk can improve as CEO
Leaving aside the jokes, Buffett has been quite critical with Elon Musk recently. In April 2019, Buffett rebuked Musk's behavior as CEO of Tesla, saying that Musk is an "extraordinary kid" but that his casual tweeting is problematic.
"I think it has room for improvement, and I would say the same thing, I just do not see the need to communicate [on Twitter]. "
Buffett says he has only spoken to Musk once or twice and has not spoken to him in the last seven or eight years.
Despite his admiration for Musk personally, Warren Buffett apparently is not a fan of Tesla and does not invest in it.
Listed below are the 15 largest stock holdings of Berkshire Hathaway per amount, reportedly in its 13-F filing in February 2019.
Buffett goes everything for Amazon
A recent addition to the Berkshire portfolio is Amazon.
As reported by CCN, Buffett confessed that he had underestimated Amazon's huge potential and the ruthless impulse of CEO Jeff Bezos to crush all his rivals, especially Walmart.
"I've been an idiot for not buying [Amazon stock sooner]. "
Buffett says that Berkshire Hathaway has been quietly buying Amazon shares in recent months. Those purchases will appear in a SEC filing later this month.
Amazon Stock Jumps after the & # 39; idiot & # 39; Warren Buffett reveals the participation of Berkshire https://t.co/WQQdx7GGyd
– CCN.com (@CCNMarkets) May 3, 2019