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Nobody mentions Buffet as potential buyer

Discussion in 'TSLA Investor Discussions' started by ppl, Jun 24, 2013.

  1. ppl

    ppl Member

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    Now before dismissing as totally crazy
    1. Good fit for buffet buys well run companies that he understands. Although avoids tech he understands cars
    2. Good fit for musk. Buffet doesnt interfere in running of companies he buys Musk would have total autonomy and
    maintain credit he is due. It would still be his baby
    3. Good for tesla.
    A. Prestige
    B. Berkshire contacts volume deals etc
    C. All the funds tesla needs immediately
    D. Political connections to make state government issues disappear
    E. would remove issue of tesla surviving to service cars is everyone's mind
     
  2. aznt1217

    aznt1217 Active Member

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    I actually thought about this quite a bit. Buyer talk wasn't necessarily really on the table till the loan got paid off. Typically warren buys companies that were once great financially but are beaten down. It's too early in Tesla's history for him to look at yet.
     
  3. sleepyhead

    sleepyhead Active Member

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    Buffet is more of a value investor. I don't think we would purchase a high growth "overvalued" company. His motto is "Get greedy when others are fearful". It looks like everyone now is greedy on Tesla so I doubt Buffet would look at it.

    Remember that at current market cap, you would have to offer a $20bn price tag in order to have a chance to buy Tesla. Noboby is going to pay that much right now except for maybe Google.
     
  4. Citizen-T

    Citizen-T Active Member

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    Buffet buys good values and is traditionally shy when it comes to technology companies. I think we can agree that Tesla is not a "value" and is certainly a tech company.
     
  5. qwk

    qwk Model S P2681

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    Buffet will not be buying Tesla. Like pointed out above he does not invest in stuff he doesn't understand(tech), and his track record in his older years hasn't been what it was in the past(BYD for example).
     
  6. AudubonB

    AudubonB Mild-mannered Moderator Lord Vetinari*

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    As someone who has followed Berkshire Hathaway for many decades, I can vouch that there is nothing in Tesla's makeup that fits Mr Buffet's investment parameters.

    Now, amongst Charlie Munger's kids: Wendy, Molly, and Charles T. Jr. - it could be they look at it differently. But they haven't control of the gabazillions that Dad+Buffet have.....
     
  7. DaveT

    DaveT Searcher of green pastures

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    I've been watching a lot if past Warren Buffet videos lately and thought that buying TSLA stock would be something that Warren might consider because its in an area he could understand (cars) and it could be defended that Tesla has a competitive advantage that could last for decades.

    However, since buffet is already invested in BYD, I don't see him making another investment in an electric car company. It's too bad he picked BYD and not Tesla.

    On a side note, I've been confused with Buffet's investment into IBM. Can't see that as a field he knows well and I don't see IBM's "moat" that will last another 30+ years.
     

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