Elon Musk tweeted his best investing advice—and it sounds a lot like Warren Buffett's strategy (2024)

FAQs

What did Elon Musk say about Warren Buffett? ›

Tesla CEO Elon Musk. Elon Musk thinks Warren Buffett's job is boring and wouldn't want it.

Buffett follows the Benjamin Graham school of value investing, which looks for securities whose prices are unjustifiably low based on their intrinsic worth. Rather than focus on supply and demand intricacies of the stock market, Buffett looks at companies as a whole.

Elon Musk's investment strategy

His investments can be divided into two general categories -- companies he started or controls and cryptocurrencies. Unlike many other billionaires, Musk doesn't have a large portfolio of publicly traded stocks of companies where he doesn't have day-to-day involvement.

Invest In Low-Cost Index Funds

To build up retirement savings, Buffett swears by one simple tip. “Consistently buy an S&P 500 low-cost index fund,” he told CNBC in 2017. “I think it's the thing that makes the most sense practically all of the time.”

I always invest my own money in the companies that I create. I don't believe in the whole thing of just using other people's money. I don't think that's right. I'm not going to ask other people to invest in something if I'm not prepared to do so myself.

When something is important enough, you do it even if the odds are not in your favor. Life is too short for long-term grudges. I'd rather be optimistic and wrong than pessimistic and right.

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule. And that's all the rules there are.”

“Price is what you pay, value is what you get.” This famous Buffett quote strikes at the heart of the “value investor” approach and reveals the secret of how Buffett made his fortune.

What makes Elon Musk so successful? ›

Overall, Elon Musk's success can be attributed to a combination of factors including his intelligence, determination and innovative ideas. His Asperger's probably played a role in shaping his perspective and approach to problem solving and likely contributed to his success in certain areas.

The asset was bought by Kirill Evstratov on November 2021. Elon Musk owned a vast real estate portfolio in Bel-Air, a neighbourhood of Los Angeles. In 2012, he bagged his first purchase in the area, which was a mansion. Surprisingly, it was the same house he rented with his family in 2010.

Several asset classes perform well in inflationary environments. Tangible assets, like real estate and commodities, have historically been seen as inflation hedges. Some specialized securities can maintain a portfolio's buying power including certain sector stocks, inflation-indexed bonds, and securitized debt.

Warren Buffett is perhaps the best example of the power of long-term compounding. Buffett uses compound interest, dividend reinvestment, and the power of constantly reinvesting the operating cash flow generated by Berkshire's businesses to his advantage.

What Buffett's rule essentially means is don't become enchanted with an investment's potential gains, but also look for its downsides. If you don't get enough upside for the risks you're taking, the investment may not be worth it. Focus on the downside first, counsels Buffett.

They are: (1) Use specialist products; (2) Diversify manager research risk; (3) Diversify investment styles; and, (4) Rebalance to asset mix policy. All boringly straightforward and logical.

It all started with Warren Buffett, who said "there are really just two rules of investing: Rule 1: Don't lose money; Rule 2: Don't forget rule number one." Today, you'll learn how to use Rule #1 to help you become financially independent. You're Investing In. Must Have A Good "Moat."

Elon shared that it is important to be useful to the world around you even if it is a challenge. "Do things that are useful to your fellow human beings, to the world." He further suggested that it's challenging to be useful – very difficult!”

What is the most inspiring quote by Elon Musk? ›

1. "If something is important enough, even if the odds are against you, you should still do it." I was thinking: what if it really is impossible. But Elon Musk then takes it to the next level always: "let's go to Mars".

Elon Musk Quote: For me it was never about money, but solving problems for the future of humanity.

“The first step is to establish that something is possible then probability will occur.”

A jury consisting of 1,500 film artists, critics, and historians selected "Frankly, my dear, I don't give a damn", spoken by Clark Gable as Rhett Butler in the 1939 American Civil War epic Gone with the Wind, as the most memorable American movie quotation of all time.

The 5/25 rule's popularity came from a story about Warren Buffett having given Mike Flint, his pilot for 10 years, advice about his career priorities. The advice is to list out his top 25 career goals, and from those 25, encircle the top 5.

Avoid Debt, Especially Credit Card Debt

If you're smart, you're going to make a lot of money without borrowing." Buffett is especially wary of credit cards. His advice is to avoid them altogether. "Interest rates are very high on credit cards," Buffett once said.

The Aggressive Portfolio

An aggressive portfolio seeks outsized gains and accepts the outsized risks that go with them. 1 Stocks for this kind of portfolio typically have a high beta, or sensitivity to the overall market. High beta stocks experience greater fluctuations in price than the overall market.

“It's fine to celebrate success, but it is more important to heed the lessons of failure.” It's easy to get caught up in the excitement of success, but success on its own has very little to teach you. It's important to pay attention to your failures and learn from them going forward.

What are the 4 pillars of Warren Buffett? ›

Warren Buffett's Four Pillars of Investing. Quality of Information. Consistency of Earnings Growth. Finding Opportunities To Drive Your Investment Style.

The one easy way to become worth 50 percent more than you are now — at least — is to hone your communication skills — both written and verbal. If you can't communicate, it's like winking at a girl in the dark — nothing happens. You can have all the brainpower in the world, but you have to be able to transmit it.”

Buffett doesn't limit building up his knowledge to books alone. He reads six newspapers a day, including The Wall Street Journal, Financial Times, The New York Times, USA Today, Omaha World-Herald, and American Banker.

Musk's 5 Step Design Process consists of making the requirements less dumb; delete the part or process; simplify and optimise the design; accelerate cycle time; and automate.

Space Exploration Technologies (SpaceX) is Elon Musk's private space exploration company, and it is widely known as one of his most significant inventions. SpaceX was founded in 2002 to reduce the cost of space exploration and ultimately explore Mars.

Musk's remarkable jump in wealth is linked to his ownership stake in electric car maker Tesla, and to a lesser extent his holdings in ventures including Space X and Boring Company.

Much like everything else associated with Mark Zuckerberg, his real estate portfolio seems to have grown exponentially over the years.

"In fact, I don't even own a home right now. I'm literally staying at friends' places," he said. "If I travel to the Bay Area, which is where most of Tesla engineering is, I basically rotate through friends' spare bedrooms." Musk also notes he doesn't own a yacht or take vacations but does own a plane.

Another inflation-protected asset is precious metals such as gold, silver and platinum. Historically, these assets have shown a high degree of resiliency during prolonged periods of inflation. Investing in precious metals can also help diversify your portfolio if it's comprised mostly of stocks and bonds.

What stocks do worst in a recession? ›

Key Takeaways. Berkshire Hathaway's portfolio's five largest positions are in Apple Inc. (AAPL), Bank of America Corp (BAC), Chevron (CVX), The Coca-Cola Company (KO), and American Express Company (AXP).

These are: invest within your circle of competence, think like a business owner when buying equities, and buy at inexpensive prices to provide a margin of safety. From 1965 through 2017, CNBC calculates that shares of Buffett's Berkshire Hathaway Inc.

Andrew Carnegie, one of the wealthiest entrepreneurs of all time, once said that 90% of all millionaires. become so through owning real estate.

Some options for relatively safe investments include high-quality bonds, certificates of deposit (CDs), and money market accounts. These investments are generally less risky than stocks, but also have lower potential returns.

“90% of all millionaires become so through owning real estate.” This famous quote from Andrew Carnegie, one of the wealthiest entrepreneurs of all time, is just as relevant today as it was more than a century ago. Some of the most successful entrepreneurs in the world have built their wealth through real estate.

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule. And that's all the rules there are.”

They spend less than they earn. They save their money and make their savings grow. They manage their finances carefully. They seize investment or business opportunities when they arise.

According to this principle, individuals should hold a percentage of stocks equal to 100 minus their age. So, for a typical 60-year-old, 40% of the portfolio should be equities. The rest would comprise high-grade bonds, government debt, and other relatively safe assets.

The Three Rs of Investments: Research, Risk, and Reward.

What is Rule 25 in investing? ›

The 25x Rule is simply an estimate of how much you'll need to have saved for retirement. You take the amount you want to spend each year in retirement and multiply it by 25. Generally, you can look at your current salary to get an idea of how much you might be able to comfortably live off in retirement.

The magic formula is a simple, rules-based system designed to bring high returns within reach of the average investor. By following a simple, algorithmic approach, the magic formula allows investors to easily identify outperforming or undervalued companies, without letting emotions or instinct cloud their judgment.

Those general saving targets are often called the “3-6-9 rule”: savings of 3, 6, or 9 months of take-home pay. Here are some guidelines to help you decide what total savings fits your needs.

The old-school approach for many investors and financial advisors has traditionally been to structure an investment portfolio on a 70/30 basis (or similar figures). This strategy allocates 70% of an investor's funds to equities or equity-focused investments, and 30% to bonds, or fixed-income investments.

How to Stay Listed. Listing requirements vary from one exchange to the next. For example, on the New York Stock Exchange (NYSE), if a security's price closed below $1.00 for 30 consecutive trading days, that exchange would initiate the delisting process.

Elon Musk Quote: For me it was never about money, but solving problems for the future of humanity.

According to Forbes, Warren Buffett's net worth in May 2023 is $113.3 billion. He is currently the 6th richest person in the world.

1. "If something is important enough, even if the odds are against you, you should still do it." I was thinking: what if it really is impossible. But Elon Musk then takes it to the next level always: "let's go to Mars".

How old is the average millionaire? The average millionaire is 57 years old. This is because it takes smart financial decisions, hard work, and wise investments to become a millionaire, most of which don't fully pay off until around the age of 50 or 60.

Who owns the most stocks in the world? ›

'Billionaire Stocks': Bill Gates, Berkshire Hathaway (BRK.B)

The natural stock pick held by the world's wealthiest person is Microsoft (NASDAQ:MSFT), the giant tech company Bill Gates co-founded with Paul Allen in 1975. Gates still owns almost 103 million shares of the company worth $15.4 billion.

Who is the richest man in the world? As of May 1, 2023, the richest man in the world is Bernard Arnault, the CEO and chairman of LVMH of France; he's worth nearly $237 billion. He moved into the number one spot after Elon Musk's fortune fell in late 2022 as shares of electric carmaker Tesla fell.