Andy Nurman
November 7, 2023
Warren Buffett’s Berkshire Hathaway is sitting on a record $157 billion cash pile, as the billionaire investor has found few attractive deals to put his money to work. The cash hoard has been boosted by both high interest rates and a dearth of meaningful deals.
He hinted through his longtime associate, Charlie Munger, about the possibility of investing in Tesla.
Despite Berkshire Hathaway reducing its holdings in BYD, Munger, during a podcast on Acquired, praised BYD’s founder, expressing, “He’s a fanatic that knows how to actually make things with his hands. He’s closer to ground zero in other words. The guy at BYD is better at actually making things than Elon is.”
Munger further emphasized the superior position of BYD over Tesla, stating, “I have never helped do anything at Berkshire that was as good as BYD,” and noting the exceptional rate of return on Berkshire’s initial investment in BYD, made in 2008. Munger highlighted that Berkshire’s investment had multiplied 33 times, stating,
With a 33x return on investment, these investors are geniuses, even if the YOLO crowd may disagree.
Given these remarks, the likelihood of Warren Buffett investing in Tesla seems improbable in the foreseeable future, based on Munger’s praise and confidence in BYD’s success. Although as a driver, I still prefer Tesla. You can listen to the full podcast below.
