Legendary investor says the car business is tough and different, but he will ‘support whatever Tim Cook does’
It would be a “very poor idea” for Apple Inc. to invest in Tesla Inc., Berkshire Hathaway Inc. Chief Executive and legendary investor Warren Buffett told Fox Business on Thursday.
Buffett also issued an indirect, mild rebuke to Tesla Chief Executive Elon Musk during an interview broadcast Thursday, saying in regards to Musk’s “funding secured” tweet that while anyone can misspeak, “if you misspeak, you correct it immediately.”
“I’d support whatever Tim Cook does, but I think it’d be a very poor idea to get in the auto business.”
And If you have a stock “trading like crazy,” minutes later “you say I misspoke when I said ‘funding secured,’ I meant to say I really think I can get funding, something of the sort,” Buffett said.
Musk last week backtracked on plans to take Tesla private, a proposal aired Aug. 7 through the now infamous “funding secured” tweet, which has ignited scrutiny from the Securities and Exchange Commission.
When asked whether he’d support Apple buying Tesla, Buffett offered his support but was skeptical.
“I’d support whatever Tim Cook does, but I think it’d be a very poor idea to get in the auto business,” Buffett said.
Selling cars is “not an easy business,” with plenty of competition, no first-mover advantage, and you win one year and lose the next, he said. “It does not give you a permanent advantage,” Buffett said.