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Warren Buffett invests based on the fundamentals of a company / stock. Buffett’s point is that he considers Tesla a gamble not an investment because the fundame
by etempleton 3y ago
Warren Buffett invests based on the fundamentals of a company / stock. Buffett’s point is that he considers Tesla a gamble not an investment because the fundamentals are not there to support the high valuation.
At one point Tesla was valued more than Toyota. Will Tesla sell as many cars as Toyota any time soon? No? Then the valuation is incorrect and will theoretically self correct in time.
- grepfru_it 3y agoI think the point is that Tesla was not always a gamble. If Warren buffet can invest in ZOOM but calls Tesla speculation is clearly a sign of missing the mark. Tesla was setting the bar for electric vehicles well before 2022. It’s okay to say your favorite investor doesn’t always get his picks right.
- etempleton 3y agoTesla's stock was overweight before it was able to turn a profit. The company nearly went bankrupt according to Elon himself before they could turn the corner. It was a big IF on whether Tesla or anyone could produce electric cars at volume or at a profit even while the valuation was sky high. No matter how bullish you are on electric cars (which I am) or Elon, it was a speculative investment and that is not something that Warren does. He is a value investor. He freely admits he has missed a lot of opportunities because of that and there is a strong argument to be made that his era of investing is over or at least not present at the moment. And Berkshire invested in Zoom, which was probably a Charlie Munger decision; not Warren himself. Charlie loves Zoom. Warren hates Zoom as he explains in this interview: https://www.youtube.com/watch?v=EJImdZEgghQ https://www.youtube.com/watch?v=EJImdZEgghQ
- grepfru_it 3y ago[flagged]