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Warren Buffett is likely to load up on cheap stocks as other investors panic in 2023, Elon Musk says

    Warren Buffett is likely to load up on cheap stocks as other investors panic in 2023, Elon Musk says

    Elon Musk says Warren Buffett may go on a stock buying spree in 2023. Elon Musk says investors can pounce on high-quality companies while the markets are in a panic.

    Elon Musk flagged higher interest rates and a looming recession as headwinds for stocks. Elon Musk says Warren Buffett is likely to cash in on market chaos in 2023 and load up on cheap stocks.

    I doubt Warren Buffett is going to buy a lot of stock next year, the CEOs of Tesla, SpaceX and Twitter said Thursday in a Twitter Spaces conversation with Whole Mars Catalog. Elon Musk said, ‘If the fundamentals of a company are very strong, but then the market is showing panic for some time, then obviously this is the right time to buy shares.’

    Buffett, CEO of Berkshire Hathaway, is a master at identifying undervalued, high-quality businesses and investing in them for the long term. For example, Berkshire spent just $1.3 billion for a $22 billion stake in American Express and $1.3 billion for Coca-Cola stock, which is worth $25 billion today.

    Even seasoned investors have been known to jump in times of turmoil. He made lucrative deals with Goldman Sachs, General Electric and other ailing companies during the financial crisis. In addition, he spent a record $70 billion on stocks and acquisitions this year in the face of historic inflation, rising interest rates and recession fears.

    Elon Musk, who fears the combination of higher rates and an economic downturn could hurt auto demand and drag stocks down, apparently believes the anxiety in the markets will create buying opportunities for Buffett. The Tesla chief has taken aim at Buffett in the past. He distanced himself from Investor, saying in October that he builds products rather than builds investment portfolios.

    He also declared that he’s not a big fan of the investor, and finds his role at Berkshire extremely boring, studying company reports and allocating capital. Elon Musk quotes investors on an earnings call, while Buffett praises Tesla’s unexpected success and calls Musk a remarkable person.

    The pair’s most famous clash occurred in 2018, when Musk lamely dismissed Buffett’s concept of a competitive moat around his companies. Elon can turn things upside down in some areas, Buffett replied. I don’t think he wants to take us to Kandy. Elon Musk later tried and failed to create a candy that was far better than the competition.

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