#StockMarket #profit #Tesla #Buffett #Tesla⠀
🔥 «Smart Money»: Why Buffett Won't Buy Tesla
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Musk missed again: his media arrogance did not bring
profit. After information about the sale of Apple’s shares, Berkshire Hathaway offered "old man Warren" to purchase Tesla shares, to which he received a polite but clear refusal from the fund’s managers.
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"This is an obvious step!" Musk wrote in a post on X, suggesting that he combine his claims to technical leadership with the business wisdom of a market guru. "We only buy what we like," Buffett once again said.
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Recall: Buffett is committed to a long-term strategy of investing in companies that he understands well and that have strong financial performance. Such shares must have:
• low price-to-book ratio and positive beta tests,
• high dividend payout ratios and
profit growth rates.
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Alas, Tesla, along with its growth potential, has an extremely high degree of risk, minimal stability, and meets only one of the necessary criteria. Additionally, Berkshire Hathaway prefers to invest in companies with low to moderate valuations, while Tesla shares have experienced significant growth in recent years and traded at fairly high multiples.
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Finally, Buffett may simply not see the profit potential in Tesla or not share the global vision of the company's management. So it's unlikely that Tesla stock will be the "accidental big opportunity" that the guru mentioned at Berkshire Hathaway's last annual meeting.
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By the way, only in 2014, instead of his old 2006 Cadillac DTS, Buffett bought a Cadillac XTS for $45,000. Moreover, according to his admission, he made this purchase under pressure from his daughter, who stated that it was simply a shame for the business tycoon to drive an old car. He still uses this traditional car and has no intention of changing anything.
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I just don't like you, Elon Musk. And Tesla is yours too.
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Profits to y’all!