Musk: Buffett lost by not investing in Tesla early

Warren Buffett has grown his company's stock portfolio from $15 billion in 1994 to about $300 billion today, thanks to winning bets on the likes of Apple, Bank of America, and Coca-Cola.

Elon Musk says that the famous investor and CEO of Berkshire Hathaway could have achieved a similar result simply by betting on his predecessor early.

"Or he could have invested in Tesla at a market value of $200 million when he had the opportunity to do so," the CEO of Tesla, Twitter, and SpaceX tweeted on Sunday.

Buffett lost by not investing in Tesla early

  • He was commenting on a video showing how Berkshire's stock portfolio has changed over the past three decades or so.

  • According to information provided by Musk in late February, Charlie Munger, a partner in Buffett's company, declined the chance to buy Tesla stock in 2008 when it was valued at $200 million.

  • The electric car company went public for nearly $2 billion in 2010, and its market capitalization has risen to $1.2 trillion in November 2021.

  • Tesla's value has since halved to just under $600 billion as of Friday's close.

  • However, Berkshire still has an opportunity to buy for less than 0.1% of the automaker's current value, according to Musk.

  • In 2008, Buffett and Munger could have purchased, say, a 10% interest in Tesla for $20 million, according to Musk's comment.

  • That stake would have been worth about $120 billion at the stock's peak, and about $60 billion today which is roughly a 3,000% return.


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