TECH - Why Does Warren Buffett's Bet On Apple And BYD Make More Sense Than Berkshire Throwing Money At Tesla? Fund Manager Explains | Benzinga
Right after Berkshire Hathaway, Inc.’s (NYSE:BRK) (NYSE:BRK) annual shareholder meeting, Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk yet again indirectly urged Warren Buffett to invest some of his cash pile in the electric vehicle maker. However, Tesla investor and Future Fund Managing Partner Gary Black doesn’t see this as a possibility.
What Happened: Black stated, “Buffett would not buy as an investment – it's not his type of stock,” in a post on X, formerly known as Twitter.
He explained that Buffett is a value investor, who typically expects growth rates and margins to revert to the mean. Tesla, on the other hand, is considered a growth stock that doesn’t follow this presumption.
Value investing focuses on stocks that are undervalued relative to their intrinsic value at a given time, while growth stocks are associated with companies that can increase their stock prices, revenue, profits, or cash flow at a faster rate than ...