Warren Buffett challenged Elon musk.
Warren Buffett said Elon Musk wouldn’t want to come after him in the candy business. But Elon Musk accepted the Challenge.
Musk is “starting a candy company & it’s going to be amazing,” he uttered in a Twitter post Saturday. He was pushing back after Buffett and his business partner Charlie Munger said the Tesla Inc. founder was wrong to believe “moats are lame,” as Musk said in a conference call earlier this week. A moat is a business’s competitive advantage that keeps rivals at bay.
Buffet said there are still businesses with moats, including the See’s Candies unit that Berkshire owns, and that Musk wouldn’t want to take on his company in that area.
“I am super super serious,” Musk said of his candy idea. He also tweeted a movie clip from the animated “Trolls,” with characters dancing to Justin Timberlake’s song “Can’t Stop The Feeling!”
Musk recently took aim at the idea a successful business needs a “moat” — a competitive advantage that keeps rivals at bay.
The pace of innovation, he said, is more important in the long run. On Saturday, Warren Buffett and his business partner, Charles Munger, shot back. “Elon says a conventional moat is quaint, and that’s true of a puddle of water,” Munger, 94, said. “It’s ridiculous. Warren does not intend to build an actual moat. Even though they’re quaint.”