Elon Musk dismisses Warren Buffett's work as 'boring', but investing must be boring to make money

The founder of Tesla always made statements that made public opinion. Most recently, on the May 7 broadcast, Elon Musk commented that the Warren Buffett-like investment was very boring and he did not admire Warren Buffett.

Billionaires Elon Musk and Warren Buffett. Photo: Getty Images

Billionaire Elon Musk did not hesitate to give his opinion on legendary investor Warren Buffett. During Tesla's recent earnings report, Elon Musk called Warren Buffett's famous investment strategy "mediocre".

In the podcast "The Joe Rogan Experience" on May 7, Elon Musk said he "doesn't admire Warren Buffett" and criticizes the legendary investor's work as "boring" despite being "important". .

Elon Musk mentioned Warren Buffett when he and the host Rogan discussed the different types of billionaires. Rogan says that some people make money by "making great products," while others are rich by "investing in companies or rotating capital in the stock market".

It seems that Musk belongs to the group of billionaires creating "great products". And who is the representative for the second group?

The founder of Tesla said: "I will take the example of Warren Buffett. To be frank, I'm not a fan of Warren Buffett, but he does a lot of capital allocation. He reads a lot of annual reports and figures. accounting, this is really boring ".

Capital allocation is the process of distributing financial resources to help the company grow better in the long term.

Elon Musk described Warren Buffett's work as an investor as "determining whether Coca-Cola or Pepsi are worth the additional capital".

(Berkshire Hathaway owns 9.3% of the total shares of Coca-Cola, and Warren is known to love this beverage, drinking several cans every day).

Elon Musk continued: "If you ask me, I will answer that this is a boring job, but it is also important. For example, which company deserves more or less capital? Should it expand or grow? Is this product made better or worse than the competition? "

"If a company creates attractive products or services, then they should receive additional capital. Otherwise, the opposite."

The founder of Tesla said that "We should have fewer people making laws and finance (like Warren Buffett)," and more people inventing and manufacturing ".

Many famous people have also commented that investing is a boring job, and that it must be boring to be profitable.

Paul Samuelson, the first American to receive the Nobel Prize in Economics, said: "Investing must be tedious like waiting for paint to dry or wait for the grass to grow. If you want to get excited, take 800 USD to Las Vegas. gamble ".

Short selling tycoon George Soros also has the same opinion: "If investing is entertainment, if you are excited, maybe you are not making money. Good investment is always boring."

On Warren Buffett's side, though he has said that Elon Musk "has some room for improvement" (such as thinking more carefully about Twitter posts), he also calls Elon Musk "a character." extraordinary".

Warren Buffett told CNBC's 2008 program: "Elon Musk is trying to improve a product, and I respect him for this," referring to electric car company Tesla.

He added: "The American public will decide whether his efforts will succeed or not, and this is not easy."