- In 2019, Billionaire Investor Charlie Munger took a jibe at Elon Musk’s investment behavior.
- In 2023, he was asked about his opinion once again.
Besides owning Tesla, SpaceX, and Twitter, Elon Musk is also known for his mercurial behavior. The billionaire businessman has caused quite a stir with his tweets in the past. He also remains one step ahead when expressing dismissal or anger over anything.
From one billionaire to another
But his outspoken comments are not taken nicely by everyone, especially other folks from the American business arena. And this got proved in the 2019 annual meeting of Daily Journal Corp. The renowned billionaire investor Charlie Munger took a jibe at Musk when asked about choosing a candidate for a job with enough IQ.
Munger is a 99-year-old vice chairman of Berkshire Hathaway Inc. who played side by side with the iconic investor Warren Buffett. He has a net worth of $2.5 billion and is one of the most widely-followed stock experts globally.
During the meeting, a shareholder asked him about his preference for hiring in this company. The querier asked if he would give a job to a person with an IQ of 150 but claiming to be 170 or to a person with an IQ of 130 but claiming it to be 120. In a sarcastic response, Munger said you must be pointing out to Elon Musk.
Munger explained this answer and said that he praises Musk’s daring attitude in trying impossible ventures. However, he wants to hire someone who knows their limitations and capabilities. Supposedly, he indicated that Musk does not have a clear idea about what he can do or not.
Furthermore, Munger said that to become successful in investments in the long run, one needs to know their abilities. He attributed his and Buffett’s success to this approach which goes at variance with Musk’s. In his case, pouncing on short-term and enticing options are better, but they become pretty shortsighted when it comes to generating revenue for a long time.
Reviewing investments of Munger & Buffett
Notably, Munger and Buffett have different approaches to investments. But they both have made significant profits. It’s hard to tell whose method is correct as they both target businesses that could generate proceeds in the long run. On the other hand, Musk is keen to take up high-risk ventures that supposedly eke out high profits.
According to many, investing in startups is good when you are in for a long time, and there are high chances of success. Initially, the ride could be pretty bumpy, and there may not be any profits for quite some time. But once the company is established, the gains start to rake in. Furthermore, platforms like Wefunder and StartEngine have made this easier for many investors.
In the 2023 shareholder meeting, Munger and Buffett were asked to comment on their statement about Elon Musk. The question was mainly put to Munger. A shareholder asked if he still holds the same view on Musk, especially after the success of SpaceX, Starlink, and Tesla. Munger said he’ll still cling to his opinion about the tycoon. He noted that Musk still overestimates himself and makes unwise investment decisions.