Berkshire Hathaway Chairman and CEO Warren Buffett answered questions at the 2019 Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska. Buffett commented on Tesla’s recent decision to sell cars online, saying “using the internet to shop for cars is like using the internet to shop for anything”.
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Insurance rates on Teslas are MUCH higher than gasoline cars. If Musk prices Tesla auto insurance below Geico or Progressive, he will lose money. Musk is an expert at losing money. Tesla loses money on every car they sell. Tesla made a total of 77,103 cars in 2019 first quarter with a $702 million dollar loss. That is a loss $9,104 per car.
As successful as Buffett is, he couldnt be more wrong on this, and Elon is just the guy to prove it….
Spoiler alert Munger is actually a young Yoda and in a few hundred years he will morph more into Yoda look and will guide Skywalker.
Charlie dropping some knowledge upon us at the end. Thank you for your words of wisdom
😂
Charlie didn’t care at all.
Munger the savage just dgaf anymore
A BMW M4 costs less to insure than a Tesla model 3 and that is unfair. 100% of tesla owners will insure their cars with tesla
Progressive probably appreciates the nod from Buffet. Its rare for Buffet to acknowledge a competitor this way. Taking Buffet’s side, one thing I’ve yet to hear from Elon: scale and ability to get good solid return on the “float”. Yes Tesla has the data on the drivers, but what about managing the capital and assets “float” of an insurance company. That side of the biz has nothing to do with the drivers, and is arguably more important than the driver data.
Buffet also wasn’t a fan of apple for a long time.
Chat me I will tell you more
I’m pretty sure consumers don’t think auto dealerships take care of them.
It has probably nothing to do with the fact Warren buffet owns Geico…
I think it definitely makes sense from Tesla’s perspective to do insurance. Knowing your exact driving habits, doing most of the driving themselves (hopefully soon), and knowing everything about the car seems like they could easily have much better models to get good pricing as well as making their cars cheaper overall. However I think Tesla and Elon Musk definitely try to overstretch a bit too far and/or a bit too fast. While in theory it makes sense to do all of this they struggle with customer service and response time to getting and fixing cars to large extent already. They’re really going full tilt on this vertical integration and it would be great if they could do all of it, but Tesla is kidding themselves if they don’t expect severe growing pains.
Tesla can repair their own cars more cheaply than an insurance company can pay Tesla to do it.
In some counties Tesla insurance cost is much higher than most other cars. Tesla operates it’s own insurance business to level down to a reasonable insurance cost.
Tesla is bankrupt, who cares.
NYT & Buffet are BOTH Clueless about Electric car Company having their own INS products.
This two antiques are so behind on data , it just takes time to change there mind set….
BUFFET ALWAYS COMMENTS IN A WAY EITHER PROMOTING HIS BUSINESSES OR HURTING HIS COMPETITORS. HE IS SMART ENOUGH TO SOUND GENUINE
BUFFET is nothing compared to Musk
do you guys not realise that berkshire’s holdings are direct + indirect competitors to tesla? buffett is invested in GM + oil and gas + insurance (not sure if it’s auto). he would prefer if tesla didnt realise its full potential.
well fargo giving money for cars from car dealers, meanwhile elon is winning everything
There are 2500 insurance companies in US. Many are tiny companies. Can’t be too hard.
Dealers taking good care of the customers. That’s a joke. The dealers motto is the “3 C’s” after you buy a car. C your car. C your keys. C you later.
FANTOM (FTM) is like ETH and NANO 4.0
Definitely top 20 CMC by 2021
Revenue for Berkshire Hathaway 2018 247.5 billion Revenue for Tesla 2018 21.46 billion
And now elon was right, his insurance is saving hundreds for many people.
Elon will become the richest man in the world probably in 5 years
@@lightzpy8049 Doubt it he himself had the same general net worth for years Gates, Bezos, and Zuckerberg made more money in one year then he has in the last 5
Depends on the type of autos you are ensuring. Data of Tesla as the safest car on the road with great accident avoidance technology. Tesla insurance is a truly great idea. Tradition is what Elon has totally demolished, so a traditionalist is not your greatest source of futuristic wisdom in this industry.
Like fossil fuel, fossil opinions are not a modern guide to take seriously
I think Warren is out of touch with this perspective.
Personalized insurance, for every person using personal driving data.
Tesla is not an auto company. It’s a tech company. I suppose one can also say that it is as likely for a computer company getting into telecom business as a telecom company getting into a computer business 12 years ago. But Apple did just that.
He dug his own geico grave
Yahoo is still alive???🙈
Tesla is cheaply made, it should only sell batteries, not cars
Tesla is a technology company not an auto manufactor. Thank you. Good day
Buy some Tesla on the dip. You are betting against the smartest man on planet whose intention is to change the world for the good.
Warren sounds like James Chanos & Bob Lutz today. Another old soul underestimating Elon Musk.
I think warren is a genius but he is simply stuck in the past
Don’t bet against Elon Musk.
warren doesnt undesrstand data
I feel blessed already seeing these 2 wealthy people… yes they are rich but boring for sure. i would definitely not exchange my youth for their billions…😂
there arent anymore cardealers who take good care of their customers. theres only scumbags and cutthroarts left
Again nothing
Buffet doesn’t invest in business he doesn’t understand, that’s why he doesn’t own telsa or realize that they are a tech company not solely an auto maker
WOW FUCKING TESLA! THIER OWN INSURANCE ! AND ALL OF THE SALES REVENUE COME FROM ONLINE!!!! GENIUS! Lol Charlie: AGAIN NOTHING
He’s clearly wrong. Immagine a driver which is very calm and drives very good, tesla will use this data and offer him a cheap insurance, this will make him buy the tesla insurance cause it’s a no brainer.
wuffett is just getting too old for this
Bufffet is gonna learn about Tesla insurance soon
As I was young I always thought “wow what a genius. He has it.” But now…I just see an old man who doesn’t really know what’s happening anymore, because the world moves too fast for his age.
The way he talked about Tesla (or auto companies, as he said in general) he seems to not know about it very much.
A little bit like amazon was evaluated in the 90/early 2000s
Buffet just changed his tune and invested in Tesla hahahahahahah, one by one they all convert
Boy is he wrong
Buffett is wrong.
For all who disagrees with Mr.buffet
There is a word which describes what warren just said: specialization
Every body is good at his work
Buffet is a great investor. Elon is great builder of industries. In the words Buffet himself, money follows value. The odds of a great investor knowing more about value than a Great creator of industries is slim. Ill put my money on Elon. Currently he is the 2nd richest man on the planet as of today.
Buffett go away you’re a dinosaur – please
Buffet: i would never invest in tesla
S&P500: hold my beer
Tesla will crash in 2021. It’s stupidity that’s making its stock price go up.
@@flyingrc2041 I completely agree
buffet must have investments in insurance
Old man, old ideologies!
ELON IS THE FUTURE.
Buffet’s mistake here is, that he keeps referring to “auto companies getting in to the insurance business”. Tesla is not an “auto company”.
Elon Musk has a child like anger towards these two and they don’t feed into it at all really
This is a freezing cold take in 2025
Old man was wrong this time.
What a dinosaur he’s starting to act like
I think Buffet is partly right in that Tesla insurance wont be a big threat to traditional insurers. However, the main point is that Tesla does not have to dominate the insurance industry to make a significant impact to their bottom line. As an auto manufacturer they take up only 20%?of EV sales and a smaller fraction of the total industry. But look at what theyve done with that small percentage of the market. Now imagine if they took a similar small piece of the pie from the insurance industry. NOW you can see where this will lead.
Tesla for Future. good time to buy now.
Ask Amazon if they value the data, the data is what all the companies want.
“Insurance company is not an easy business at all ” attack to my intelligence. Give me a break
Reminds me of those two guys in the theatre balcony on the Muppets……
Selling insurance and making cars the same?
“I’ll stick with fizzy drinks, but not before I sell the airlines a month into a pandemic”.
What is your solution? Sell one month after the pandemic?
WB said: “will not destroy the auto dealer who takes good care of the customers”. Are there any such dealers??? LOL
Lots of people saying Buffett is outdated, I remember the last time I’ve heard that, and what proceeded was not good…
All that Elon do is make his own Tesla Insurance Company exclusively for Tesla owners. And he will make it way cheaper than Geico or other insurance. When Tesla Insurance is making money he will just offer it for outside cars too. Very simple. It’s not rocket science. 🤣🤣🤣
I admire these gentlemen a lot. However, Tesla is definitely outside of their circles of competence.
Well these old boys said an electric car would never be feasible too…. Let’s remember Elon isn’t a macro investor, he’s an engineer.
This guy Andrew Ross Sorkin is everywhere.
This two old guys looks like they need to change diapers.
Tesla makes the safest cars and that’s not an estimate, it’s a fact based on real data from 1m+ cars so it’s only logical that they can offer cheaper auto insurance.
Tesla is fully invested in FSD which will make the cars even safer and again push their premiums a bit lower again.
When Tesla offers insurance, other legacy insurance companies will follow their lead and that’s a fact.
Apple offers apple care because they know what to expect from their products so does Tesla.
And yes, “Insurance business” isn’t rocket science and is not as difficult as making a car.
Tesla to the moon 🚀
Be quiet old man
I feel like all of these billionaires are betting against Tesla and keep doing so even after proven wrong. At this point I just believe it’s pride and stubbornness of admitting they were wrong. Tesla is the future and I know they can see it as well but won’t say so publicly bc of admitting they’ve been wrong
Notice how Buffett uses analogy to argue all his points, that’s not first principles thinking and doesn’t get you to the truth.
I believe we all underestimate how long the market can be overvalued. Tesla is just the tip of the iceberg. If you own tesla, take some money off the table.
meh, tesla’s pe is still high, however if it could sustain its rapid growth for the coming years, eventually its pe would also lower, well, unless the market keeps expecting tesla to increase its yoy earnings within the double digit range for the next 10 years, which is not sustainable, then and only then tesla would crash
@@sleepless2541 best of luck.
They have no idea about technology. Tesla is not an automotive company.
You also need to invest the float to generate profits , Elon Musk cannot reinvest things to be profitable. TSLA reported a profit by selling bitcoin , I wouldn’t call that reliable .
We know what buffet knows is his strong suit always play to your strength nothing more
How could the greatest investor in his own insurance business give a positive opinion against his most probable disruptive competition? One has to be very naive to expect one unbiased answer from him.
For the first time I think Warren buffet is talking crap
This aged well. Should be titled old buffet and munger miss out on billions
I like this guy but he is a dinausore on that topic
This won’t age well.
Volkswagen Bank is providing insurance, providing financing and they seem to be fine. Period.
If Elon wants to get into the Insurance business I don’t think it will be that difficult for him to figure out. You just don’t want to loose any market share. Bitcoin is stupid ? Look in the mirror guys to call Bitcoin stupid shows that you don’t have the bandwidth to comprehend all that it’s about and if you took the time, hundreds of hours of research you would park 10% or more of your cash there. And that 10% would end up making you more than the 90% of the rest of your portfolio. But you can’t see it.
It’s sad to see you two loosing your grip on this new world and making the comment that the Ins business is a tough business, especially to a guy whose a genius and built the first successful EV and is building Rockets?? Oh and he’s already worth triple what your worth. I think it’s time to stop giving interviews and speaking to the public. Your going to start loosing clients if they here the nonsense coming out of you. Retire
BITCOIN is going to be your biggest mistake of your life’s. You will hear about how wrong you both were for the rest of your life’s. I wouldn’t want you guys managing any of my money. When you completely miss the biggest and most important new technology the world has ever seen. I hope you life another 20 plus years, so you can see Bitcoin worth more than a million a coin!!
byd this man invests in china :'(
In my opinion, 25% cash generated of Berkshire comes from Geico insurances. Tesla insurance scoops the most profitable clients of the insurance business, a.k.a. the safest drivers, granting them discounts. This leaves the riskier drivers with Geico, meaning Geico will have to raise prices.
Agreed this is a good point you’ve raised. Also Tesla has aspects of the Tesla cars like FSD and like super strong single body cast that makes them both less likely to have an accident and also in any accident there will be less damage and less chance it was Tesla’s fault.
Oppa plant top leader ok bill gate three tougether ok
Elon knows the invitation game but when your looking at finance that’s the man you listen to Right there. And proved right yet again, no successful launch of insurance in fact they only launched it in around 5 states and take up has been slow to say the least
Insurance is a fucking scam, I want Elon to destroy the established auto insurance business. I’ve been paying insurance for the last 8 years and haven’t had to use it once. With the money I’ve spent on insurance I could have bought a new car smh
Tesla insurance will revolutionize the market. Can save a lot,; rewards good driving and can be done online rather easily
The real reason Warren Buffett hates Elon Musk is that Berkshire Hathaway holds an 8.2% stake in Chinese electric automaker BYD Auto, more than it does in General Motors.
When Buffett says automakers gross margins are 6%, he’s right except for Tesla – whose gross margins are over 25%.
plaza sesamo