Charlie Munger Shared His Perspective On Elon Musk And Desire To Not Be Like Him: 'We Don't Want That Much Failure'

In the wake of Charlie Munger's death, the investment world, particularly in China, is reflecting on his legacy. Li Lu, the "Chinese Warren Buffett," hailed Munger as an "enlightened sage," likening him to historical figures of wisdom and virtue. The respect Munger gained in China highlights his global influence.

Tesla Inc. CEO Elon Musk may not share the same sentiment. Musk’s business and investment methods differ from Munger’s and Warren Buffett’s approaches.

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Buffett and Munger clarified their reluctance to follow Musk’s high-risk business tactics, especially in EVs. At Berkshire Hathaway Inc.'s annual meeting in May of 2023, they acknowledged Musk’s success with Tesla but expressed their preference for less risky ventures. 

“He [Musk] likes taking on the impossible job and doing it. We’re different. Warren and I are looking for the easy job that we can identify. We have a wholly different way of going about life. We don’t want that much failure,” Munger said, referring to his and Buffett's preference for more stable, less risky ventures.

Musk identifies more as a business builder than a traditional investor. He has recognized the investment prowess of Buffett and Munger, despite their early skepticism about Tesla. Munger, initially doubtful about Tesla’s future, later acknowledged its significant impact on the American auto industry, calling it a "minor miracle."

This contrast is evident in Berkshire Hathaway’s approach to the EV market. The company has been divesting from Chinese automaker BYD Co. Ltd., reflecting a conservative strategy compared to Musk’s more adventurous approach. Buffett and Munger view the auto industry as highly competitive and challenging, preferring stability over high-risk ventures.

Overall, Buffett and Munger's investment and business philosophies contrast with Musk’s. While Musk opts for high-risk, high-reward scenarios, the Berkshire Hathaway duo leans toward stability and lower-risk investments, illustrating diverse routes to success in business and investing.

Whether you prefer high-risk ventures or the stability of safe stocks, there are countless opportunities for success. Whether you choose to invest in groundbreaking startups or opt for more conservative ventures, the key is to understand and align with your own risk tolerance and investment goals.

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