Elon Musk has an original way of surpassing Warren Buffett
Elon Musk is the new Oracle.
This title, which comes with the respect of both Wall Street and Main Street, was previously awarded to legendary investor Warren Buffett, 91, who is nicknamed the Oracle of Omaha.
Buffett inspired respect, admiration and devotion to the point where his Berkshire Hathaway conglomerate’s shareholder meeting (BRK.A) – Get the Berkshire Hathaway Inc. Class A report. has transformed over the years into something of a pilgrimage for his legion of fans who often travel to the four corners of the world to listen to and see him and his associate Charlie Munger. Each of his financial advice is dissected and interpreted. Bosses and amateur investors try to put his recommendations and opinions into practice.
If for decades, many investors and CEOs courted Buffett in the hope of being designated ‘heirs’, no figure has managed to emerge.
But ironically, it was on the evening of the Berkshire Hathaway shareholders’ meeting, the first in person since the Covid-19 pandemic, that Elon Musk chose to take over from Buffett by force.
Musk embraces his new status
Quite a symbol!
For observers of Musk, 50, they know that the billionaire calculates his every move well. It is therefore not insignificant that he chose Buffett’s feast day to finally embrace the role of Oracle that his almost 90 million Twitter followers have been pushing him to play for many months now. Basically, the richest man in the world seems to say that a new era has begun. An era of which he is the center.
The serial entrepreneur will therefore now begin to provide financial advice to those who come to ask him for advice. His communication and movements, already closely monitored, will be even more so.
“Since I’ve been asked a lot: buy stock in multiple companies that make products and services that *you* believe in,” Musk wrote on Twitter in the early morning hours of May 1.
He added that, “Only sell if you think their products and services are trending worse. Don’t panic when the market does,” Musk said. “It will serve you well in the long run.”
The tweet had already been liked over 450,000 times at the time of writing.
Now we’ll have to get used to saying The Austin Oracle, Tesla’s headquarters since late 2021 and the city in which Musk now resides, not far from SpaceX, the aerospace company he founded to conquer Mars.
In ancient Greece, the Oracle is the answer given by the Gods to a personal question generally concerning the future and most often requires an interpretation. By extension, the term “oracle” also designates the human intermediary who transmits the answer of the Gods as well as the sacred place where the answer is given.
It’s no surprise, then, that Twitter users began bombarding Musk with questions about the best investments once the tech mogul put on his oracle clothes.
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“And real estate, is it a good investment?” a user asked.
“Elon, I put all my life savings in the Doge coin when it was 70¢ and have been holding it ever since,” another user said, referring to the Dogecoin meme coin, Musk’s favorite crypto. “I had to take out a 2nd mortgage on my house, sell my car and donate plasma to make ends meet. Do I continue the Hodl?”
“What do you think of metaverse/digital land purchases?” another user asked the billionaire.
Musk didn’t answer those questions, but his very first advice as an oracle was taken as gospel by some fans.
“Investing in what you love is great advice to follow,” said Lex Fridman, whose podcast previously featured Musk.
“These are good simple instructions,” said another user.
Musk Blasts Index Funds
Shortly before officially becoming Oracle, Musk sharply criticized index funds during an exchange started by tech investor Marc Andreessen.
“Shareholders themselves generally do not apply the pressure, but rather their managing agents – professional investment managers -. See for example Larry Fink, who owns about 0.0000001% of the capital for which he speaks”, wrote Andreessen, referring to the CEO of BlackRock. .
“Exactly, decisions are made on behalf of the real shareholders that are contrary to their interests!” Musk commented. “Major problem with index/passive funds.”
When a user agreeing with him added that “the reason the market reflects company fundamentals is because arbitrageurs (active investors) do. So what happens when everyone else is passive? ” Musk didn’t hesitate.
“There should be a return to active investing,” Musk said. “The passive has gone too far.”
Musk has already managed to convince Wall Street as illustrated by his ongoing acquisition of Twitter (TWTR) – Get the report from Twitter, Inc. for $44 billion. According to press reports, the CEO of Tesla (TSLA) – Get the Tesla Inc report secured a significant chunk of funding from investment banks without providing details of its Twitter business model for example.
Trust and confidence in Musk is also behind Tesla’s huge market capitalization, which currently stands at $902.11 billion at the time of writing.
No automotive group is close.
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