Elon Musk has a grand vision and takes on seemingly impossible challenges. In contrast, Warren Buffett and Charlie Munger prefer to set their sights lower: "We don't want to experience too much failure," they remarked.
During Berkshire Hathaway's annual meeting, Buffett and Munger commented on Musk's approach, noting that the Tesla CEO tackles complex issues that often result in both significant successes and failures.
Buffett and Munger acknowledge that Musk's willingness to dream bigger and tackle more daunting problems is what has allowed him to achieve great things in life. However, they also point out that taking such risks can result in more failures than successes.
As Munger, who serves as the vice-chairman of Berkshire Hathaway, stated during the meeting, "If he hadn't set his sights on unreasonably extreme goals, he would not have accomplished what he has in life."
According to Munger, "He [Musk] enjoys taking on the impossible task and accomplishing it. We, on the other hand, look for easier tasks." The 99-year-old investor went on to explain that they prefer to avoid too much failure.
Buffett, who is Berkshire's 92-year-old CEO, agreed with Munger, stating that Musk takes on much more challenging problems than they do. Buffett acknowledged Musk's dedication to solving seemingly impossible challenges, but said that such pursuits would be too arduous for him and Munger.
While Musk's all-consuming lifestyle does not appeal to Buffett, he also acknowledged that Musk would not enjoy being in his shoes either.
Musk appreciated the comments from the two legendary stock pickers and expressed his gratitude on Twitter, stating, "Appreciate the kind words from Warren & Charlie."
Buffett and Munger have praised Musk for his ability to scale Tesla into a major automaker, despite the fierce competition in the car industry. Musk has also made significant strides in reusable-rocket technology at SpaceX, although not without high-profile failures and spectacular explosions along the way.
While Musk has distanced himself from Buffett in recent years, describing himself as a builder rather than an investor, he has acknowledged Buffett's expertise. However, Musk has also referred to Buffett's job of studying companies and allocating capital as "super boring."
Despite this, Musk recently expressed that Buffett would be an ideal US Treasury Secretary, stating that the Berkshire chief could complete the job in less than an hour a week.
Musk has also criticized Buffett and Munger for passing on the opportunity to invest in Tesla at a $200 million valuation in 2008, given that the automaker now has a market capitalization over $500 billion.
0 Comments