Tesla Inc. TSLA CEO Elon Musk expressed surprise after Warren Buffett revealed that Berkshire Hathaway, Inc.'s BRK BRK cash pile stands at $189 billion.
What Happened: Musk was left astonished at just how much cash Berkshire Hathaway has on its books, after the Omaha-based investment conglomerate offloaded stocks during the first quarter of 2024.
According to Berkshire Hathaway's filings, the company pared its investments by $20 billion during the first three months of 2024 and bought $2.7 billion worth of stocks during this period.
As a result, its net inflow from this activity stood at $17.3 billion, boosting its cash pile to a record $189 billion.
Musk’s current wealth currently stands at $192 billion, making him the third richest person in the world, according to the Bloomberg Billionaires Index.
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This elicited a one-word reaction from Musk, who said, "Wow."
This is the fourth consecutive quarter of a rise in Berkshire Hathaway's cash pile.
Berkshire pared its Apple Inc. holdings by a significant margin – its investment in the iPhone maker was down to $135.4 billion at the end of Q1 2024, from $174.3 billion at the end of 2023.
Musk Asks Buffett To Invest In Tesla
Musk also thinks it's "obvious" for Buffett to invest in Tesla. This comes at a time when Musk's company, Tesla, reported a negative cash flow of $2.2 billion during Q1 2024.
"He should take a position in Tesla. It's an obvious move."
Despite a 25% rally in Tesla shares since the company's Q1 2024 earnings call, the EV maker's stock is still down 27% in 2024 so far.
Buffett was also asked about Tesla's full self-driving (FSD) technology bringing down insurance rates, impacting GEICO, one of Berkshire's portfolio companies.
Although he did not directly comment on Tesla's claims and capabilities, he did say that a reduction in accidents is good for society, which is what "we're looking for."
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