At Berkshire Hathaway’s 2023 annual meeting, Charlie Munger–Warren Buffett's longtime business partner – once again shared his thoughts on Elon Musk, the billionaire CEO behind Tesla, SpaceX and Starlink. When asked if he still believes Musk "overestimates himself, ” Munger didn’t hold back."
His answer? Yes, Elon Musk does overestimate himself. But Munger quickly followed that up with an important acknowledgment: Musk is very talented, which is part of the reason for his success.
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Munger pointed out that Musk's boldness and relentless drive to achieve the "impossible" have been key to his extraordinary accomplishments. He even credited Musk's success to a single word: fanaticism.
"Unreasonably Extreme Objectives"
Munger noted that Musk's tendency to take on incredibly ambitious goals – goals most people would dismiss as impossible – sets him apart. "He would not have achieved what he has in life if he hadn't tried for unreasonably extreme objectives," Munger explained.
This doesn't mean Munger wants to follow the same path, though. He clarified that his approach to business and life differs greatly from Musk's. Munger said, “We’re looking for the easy job,” alluding to his and Buffett’s penchant for low-risk, attainable endeavors.
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Buffett added that although Musk’s “fanatic dedication” to solving the impossible is great, neither he nor Munger would like the lifestyle. "It takes over your life," Buffett said. "And I just like the way I'm living."
Not the First Time Munger Has Commented on Musk
This isn't the first time Munger has addressed Musk's unique approach. Over the years, he's shared both admiration and skepticism about the tech entrepreneur.
In 2018, Munger described Musk as "bold and brilliant" but noted that taking big swings can result in either "remarkable results" or "quick failures."
In 2019, at the Daily Journal Corp's annual meeting, Munger took a lighthearted shot at Musk. When a shareholder mentioned Munger's idea about preferring someone with an IQ of 130 who thinks it's 120 over someone with an IQ of 150 who thinks it's 170, Munger smiled and said, "You must be thinking about Elon Musk." The crowd laughed, but Munger followed up with a key observation:
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"Never underestimate the man who overestimates himself. These weird guys who overestimate themselves occasionally knock it right out of the park."
At the 2023 meeting, Munger and Buffett clarified that while they respect Musk's achievements, they wouldn't trade places with him. Buffett said, "We don't want to compete with Elon," admitting that Musk's relentless work ethic and high-stakes goals aren't for everyone.
Musk himself has acknowledged the toll his approach takes. In interviews, he's spoken about the stress, sleepless nights and personal sacrifices involved in running companies like Tesla and SpaceX.
It would be interesting to know what they think about Musk’s recent meteoric political rise, during which, again, he was teetering between "remarkable results" and "quick failures."
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