The clash between Elon Musk and Warren Buffett over crypto, candy and moats?
Billionaires Elon Musk and Warren Buffett in the warfare of words over their views on the investment world. Things got interesting a couple of weekends ago when Musk threatened to take on his rival, seemingly with a candy initial coin offering (ICO) dubbed Cryptocandy.
— Elon Musk (@elonmusk) May 5, 2018
Musk appeared to have thrown the first punch criticising the so-called “moats”. “I think moats are lame. They are like nice in a sort of quaint, vestigial way. If your only defence against invading armies is a moat, you will not last long. What matters is the pace of innovation, that is the fundamental determinant of competitiveness,” said Elon Musk.
Buffett fired back at the annual meeting, “Certainly you should be working on improving your own moat and defending your own moat all the time. And Elon may turn things upside down in some areas. I don’t think he’d want to take us on in candy.”
So why won’t he do that?
Mr Buffet is confident on this because Berkshire Hathaway bought See’s Candies back in 1972 and continues to be the confectioner’s mother or father company even today. A good chunk of the industry pie is pretty much secured under their wing.
On the other side
Musk’s casual comment about planning an all-out candy war with See’s Candies may not come as a surprise to the observant public. He has recently fulfilled and delivered on promises, which ranges from building one of the world’s most massive lithium-ion electric battery plant to advertising novel flamethrowers to raise funds for his tunnelling organisation, The Boring Company.
However, the billionaire’s pledge to start out a chocolate company comes at the a time when great criticism is pouring over his management of Tesla. The electric carmaker reported lower-than-expected damage in the first quarter of the year the other day. However, there are some analysts out there, frets that the money the firm can burn through might signify it will need to bring in more funds pretty soon.
There are some critics out there that were unimpressed by Musk’s handling of a meeting call with experts following Tesla’s financial record, during which he called a question by a qualified analyst “boring”. Musk dismissed a question on the development of the business’s model 3 autos, instead, he moved on to answer questions from Galileo Russell, a YouTube content creator and Tesla aficionado.
The continuation of the twitter war
It’s a small wonder he struck the first blow, but it seems that Musk knows that it is called a key, and mentioned in Tesla’s first-quarter earnings conference:
“I think carpentry is considered a quaint and incomplete job, and if it defends itself from the overwhelming defence of the arm, it will not last long, it is important to make innovations, this is a competitive decision,” said Elon Musk
Buffett returned to the annual meeting after a problem with his younger partner. “Of course, you’ve been working hard to improve your grave and protect all your flowering, Elon can eat in many places and does not think he wants to bring candy.”
Predictably, Elon Musk and Warren Buffett will probably not overcome this widening “moat” between them. Let’s talk about Musk first. Last year, Musk mentioned that his friend sent bitcoin, even though he ignored the funds. Musk was also rumoured to be the mysterious Satoshi Nakamoto, a theory that emerged in Musk’s C++ knowledge source that originally used bitcoin and Musk’s space research technology. Though Musk then denied that theory, it’s no doubt that he was recognised as a pretty IT-savvy person worldwide.
On the flip side, as the CNBC recently pointed out, Buffett is really close to being a Luddite, as he demonstrated to the public by using a folded cell phone. Although Mr Buffett’s views on the technology improvements and upgrades have show signs that he’s more interested, his perception of cryptocurrency seems to have deteriorated to a certain extreme. His recent comparison of bitcoin and rat poison pretty much demonstrates his lack of fondness.
Photo credit: Flickr.
However, for various reasons, Elon Musk and Warren Buffett are recently being featured on the news for reasons not really expected. Investors have criticised Musk’s nonchalant reply of Tesla’s earnings response by reputed analysts, which resulted in a two billion dip in their market capitalisation. On the other side of the table, Berkshire Hathaway held a shareholder meeting, of which Buffett and his subordinates took the chance to and expressed their disdain of bitcoin during the session.