Warren Buffett-led Berkshire Hathaway Inc.The investment holding company’s cash position has grown to $277 million, according to a Q2 10-Q report filed with the SEC. As the cash piles up, social media is in turmoil, with some Tesla Inc. (NASDAQ:TSLA) fans are eagerly waiting for the investment expert to put some of his money into the electric car maker’s stock.
What happen: “Buffett is a value investor. $TSLA is a growth stock,” said The Future Fund LLC Managing Partner. Gary Black In his post on X, Black, who supports Tesla, mentioned Buffett’s investment logic of buying quality stocks that are trading at bargain prices, which is the premise of value investing.
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Growth stocks, on the other hand, are expected to generate returns above the market rate of return and trade at high price-earnings multiples. Their high valuations are justified only by the returns they can generate in the future.
Tesla stock has been in a long-term downtrend since late 2022, but still trades at a high forward P/E multiple of 84.75, according to the Yahoo Finance database.
Source: Benzinga Pro data
Never will two people meet: “It’s rare that two worlds collide,” Black said in the post, referring to Buffett’s ideology and Tesla’s stock characteristics. To elaborate, the fund manager said Buffett was the first Apple Inc. (NASDAQ:AAPL) stock was trading at less than 12 times earnings. BYD Corporation (OTC:BYDDY) (OTC:BYDDY) stock was purchased when it was trading at less than 10 times earnings.
Tesla: “That’s not his style” [of] “We’re out of stock,” Black said.
But Tesla CEO Elon Musk In the past, I harbored resentment toward Buffett and his late trusted subordinate. Charlie Munger Musk said he had met with Munger in 2009 about the possibility of investing in Tesla, but the meeting fell through.
Whenever Berkshire’s massive cash position was discussed on social media, the world’s richest man indirectly encouraged Buffett to buy Tesla shares. Buffett admired Musk while ignoring Tesla. “Elon is a truly remarkable person. “I would say he could score over 100 percent,” Buffett said at Berkshire’s annual meeting. “He dreams about things, and his dreams have foundations.”
Tesla closed Friday trading down 4.24% at $207.67. Benzinga Pro Data.
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This article Berkshire Hathaway’s $277M Cash Hoard Rekindles Tesla Investment Chatter: Fund Manager Says ‘Two Worlds Rarely Collide’ Originally appeared in ~ Benzinga.com
