Apple Inc. (NASDAQ:AAPL) should steer clear of investing in embattled electric automaker Tesla, according to the most successful investor in history.
MarketWatch has more details on the interesting commentary from the Oracle of Omaha:
It would be a “very poor idea” for Apple Inc. to invest in Tesla Inc., Berkshire Hathaway Inc. Chief Executive and legendary investor Warren Buffett told Fox Business on Thursday.
Buffett also issued an indirect, mild rebuke to Tesla Chief Executive Elon Musk during an interview broadcast Thursday, saying in regards to Musk’s “funding secured” tweet that while anyone can misspeak, “if you misspeak, you correct it immediately.”
“I’d support whatever Tim Cook does, but I think it’d be a very poor idea to get in the auto business,” Buffett noted. He said the car business is notoriously tough, with lots of competition, no first-mover advantage, and a rollercoaster track record where you can win one year and lose the next.
Apple Inc. shares closed at $227.63 on Friday, up $2.60 (+1.16%). Year-to-date, AAPL has gained 36.05%, versus a 9.71% rise in the benchmark S&P 500 index during the same period.