Buffett Comments Applied to TSLA

[SteveG3]

I stand by that prediction more than ever given recent developments.

I would only add that LG Chem will likely get much of the advanced Li-Ion business with large car makers in 2017-2020 unless Samsung can quickly catch up and sign more big customers (in addition to BMW) or unless there is an unexpected battery break-through from a new entrant/supplier (unlikely until 2020 given the long battery testing and car development lead times).

Coming back to value style investing this could result in very unpredictable cash-flows, margins and market share (especially since batteries traditionally are a very low margin-business in EV/stationary use).

tftf, this discussion really belongs in the other thread. fwiw, if anyone wants to read where, in response to tftf's assertions, I walked through the size of the Samsung and LG Chem battery contracts with other automakers and demonstrated that they represent volumes of battery production not even remotely close to a scale that would impact Model 3 sales, have a look at posts number #183 and #189 in that thread. After my debunking of tftf's claims in #189 seven months ago, tftf never posted in that thread again.

No Model III until 2019? - Page 5

 

[Drax7]

Buffett mentioned that you should invest in a business that even a fool can manage, because eventually one will.

No fool could manage tesla at this point.

However, According to most in SA, musk is a fool, so no problem there.

Buffett composed his set of rules, and what sets him apart is that he is good enough to know when to break his rules.