Charlie Munger Wants To Steer Clear Of Auto Industry After Investment In Tesla's Chinese Rival BYD: 'They Make Me Nervous, It's So Aggressive'

Charlie Munger, Warren Buffett‘s right-hand man and vice-chairman of Berkshire Hathaway Inc. (NYSE: BRK-A) discussed the challenging landscape of the automotive industry and how the influx of electric cars, new capital requirements and tough unions have complicated the sector.

The remarks were made during a recent interview on the Acquired podcast, Business Insider reported. Munger also expressed his preference for BYD CEO Wang Chuanfu over competitor Tesla’s CEO Elon Musk.

The 99-year-old investor recalled his venture-capital type investment in BYD Company Limited BYDDF, a Chinese battery maker that has evolved into a major player in the electric vehicle market. Back in 2008, Munger persuaded Buffett to acquire a 9.9% stake in BYD for $232 million, a stake which has since grown 35-fold in value.

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While Munger admitted to being a big fan of BYD, he confessed the company’s aggressive strategies make him nervous.

“I may be a big fan, but I’m sort of hanging on by my hat while they lurch around the track. They make me nervous, it’s so aggressive,” Munger said.

He also expressed his admiration for Chuanfu for his hands-on manufacturing skills.

In the past, Munger has praised Musk’s success in the auto industry but suggested that BYD could eventually outperform Tesla in the EV race.

“Even if you’re a genius like Musk is in some ways, there’s always some little BYD that comes out and does better,” he noted.

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