Shulou(Shulou.com)11/24 Report--

On February 27, Berkshire Hathaway, the investment company of stock god Warren Buffett (Warren Buffett), just announced its fourth-quarter and full-year results for 2022, with cash reserves of $129 billion. With such a large amount of money and reducing his stake in rival BYD, Buffett seems to have become a "big financier" in the eyes of Tesla chief executive Elon Musk.

One Twitter user asked: "Warren Buffett's Berkshire Hathaway now has more than $128 billion in cash. What stocks should they buy?" Musk immediately replied that the holding company should invest in "companies that start with T", alluding to Tesla.

Mr Musk went on to explain that if Berkshire Hathaway had seized the opportunity to invest in Tesla in 2009, the company would have made a huge return today because Tesla was valued at just $200m at the time. Today, Tesla's market capitalization has exceeded 600 billion US dollars. In October 2021 and March 2022, its market capitalization even reached $1 trillion.

Mr Musk adds: "I had lunch with Charlie Charlie Munger in 2009 and he could have invested in Tesla at a valuation of $200m." Munger is Buffett's right-hand man and vice chairman of Berkshire Hathaway.

This is not the first time Musk has mentioned that he thinks Berkshire Hathaway missed the opportunity. Last year, he recalled that Munger told him that Tesla would fail. "I had lunch with Munger in 2009, and he explained all the ways in which Tesla would fail," Musk posted on February 16, 2022. It made me feel sad, but I told him I agreed with him that we might fail, but anyway, it was worth a try. "

Musk doesn't seem to hold a grudge against Munger or Berkshire Hathaway. For him, the holding company's investment in Tesla will be a huge victory because it will send a strong signal about Tesla to traditional financial institutions and retail investors, who often admire Buffett's investment talent.

But Munger recently reiterated that BYD is far ahead of Tesla. When asked recently if he preferred BYD to Tesla, Munger replied in the affirmative. "Tesla cut prices twice in China last year, while BYD raised prices," he said. BYD is so much ahead of Tesla in Chinese projects. if you count all the manufacturing space that BYD makes cars in China, it will account for a large part of all the land on the island of Manhattan. "

In 2008, Buffett bought 225 million BYD shares through Berkshire Hathaway for $232 million. Since then, as BYD's share price has risen for years, the investment has paid off handsomely for Buffett and his investment company.

For months, however, Buffett has been reducing his stake in BYD. Berkshire Hathaway has sold nearly 95 million of the 225 million shares it originally acquired after selling another 423.5 million shares worth nearly $140 million last month, according to regulatory filings in early February. However, the company still holds 1.303 billion shares in BYD, or 12%, making it one of BYD's largest shareholders.

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