Forbes Media Centennial Celebration
Warren Buffett, the investing impresario and Berkshire Hathaway co-chairman, founder and CEO, rarely seems to make a bad move when it comes to investing. Yet Berkshire Hathaway passed on investing in Tesla, back in 2008, a move that Tesla’s CEO, Elon Musk, is rubbing in Buffett’s face today.
Explore More: 10 Valuable Stocks That Could Be the Next Apple or Amazon
Find Out: 6 Unusual Ways To Make Extra Money (That Actually Work)
While Buffett’s portfolio isn’t hurting any, Tesla is not the only investment where Buffett and co-chairman of Berkshire Hathaway Charlie Munger have missed the mark over the years.
GOBankingRates explores some of Buffett’s biggest investing misses and regrets, showing that even the top investors don’t always have perfect sight.
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
Tesla
When Berkshire Hathaway first had the chance to invest in the electric vehicle company Tesla back in 2008, Tesla was only valued at $200 million, with an uncertain future.
Musk recently posted that while Berkshire Hathaway’s portfolio has grown significantly since 1994, “[Buffett] could have just invested in Tesla at $200M market cap when he had the opportunity to do so.” It’s possible Musk feels slighted by the fact that his company is doing so well and that Berkshire Hathaway could have cashed in on that success — the volatile CEO has been known to flash his ego around.
Today, Tesla is worth almost $620 billion. But Berkshire Hathaway isn’t hurting either — shares in the company have increased 375% since 2008 as well.
Investors Business Daily speculated that Musk, currently the second-richest person in the world, with a net worth of $177 billion, is hurt by Buffett’s investment in what can be construed as Tesla’s biggest competitors in the electric vehicle market, BYD and General Motors. Berkshire Hathaway owns 12% of BYD and nearly 4% of GM, though it did sell more than 4.2 million shares of BYD last month (it still owns 11.8% of the shares).
And while Musk’s complaint may seem personal, he’s not wrong that investing in his company would have made Buffett a pretty penny. A $200 million investment in Tesla at the end of 2008 would be valued at around $620 billion today, or an astonishing 309,824% gain.
Check Out: I’m a Financial Advisor: I’d Invest My First $5,000 in These 6 Stocks
Tech Stocks
Buffett’s investing approach could be deemed old-fashioned in that he prioritizes “investments in businesses with both long-lasting favorable economic characteristics and trustworthy managers,” as he shared in a recent shareholder letter. As such, you won’t see Buffett jumping on the latest stock trend or hot new IPO.
Yet, some analysts consider his approach to tech stocks an “aversion,” suggesting he might have missed out on some big money by hewing only to those companies that have fit into his narrow standards.
Despite this tendency of his, he did surprise investors by purchasing Apple stock, and as of 2022, the company made up 40% of Berkshire Hathaway’s equity portfolio.
Early Days of Amazon and Google Stock
Perhaps the most well-known misses that Buffett still regrets are not getting in early on the now massively valued companies Amazon and Google (the latter held under parent company Alphabet Inc.).
Buffett’s partner at Berkshire Hathaway, Charlie Munger, has praised Amazon founder Jeff Bezos as a “miracle worker” and claimed to feel like a “horse’s ass” for not seeing Google’s potential.
Buffett weighed in saying, “We blew it.”
Major Airlines Stocks
Not all of Buffett’s mistakes have been misses — one of his bigger regrets was investing in the four largest airlines: United, American, Southwest and Delta Airlines, which were worth a collective $4 billion or more pre-pandemic. The pandemic tanked stocks in these companies and Buffett sold off the company’s shares in these airlines. These shares’ drops in value contributed to Berkshire Hathaway seeing a nearly $50 billion loss in the first quarter of 2020.
IBM
Another area of regret for Buffett was investing in IBM. Perhaps spurred on by his negative reputation for not investing in tech, in 2011, Berkshire Hathaway invested in IBM, which at that time seemed like it would go the distance, with name recognition and the numbers to back it up.
Unfortunately, by 2015, shareholders were already displeased with IBM’s performance in their portfolios, and by 2017, Buffett had to admit his mistake. He still saw IBM as a strong company, but it wasn’t keeping up with the necessary technological change that would keep its shares strong. Buffett ultimately sold shares in the company.
Even with these mishaps, Buffett’s failures have still netted him and his shareholders more money than some people’s successes. He’s crying, as the saying goes, all the way to the bank.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Warren Buffett Passed on Tesla — See His Other Investing Misses Over the Years
News Related
-
, Nov. 28 — One of the most anticipated Android releases for 2023 has been the Google Pixel 8 lineup. The Pixel series is often considered the best of what Android has to offer since it brings the true stock Android experience. The Pixel 8 Pro was globally released on ...
See Details:
Google Pixel 8 Pro Review: Is this the best Android phone of 2023?
-
A blank space or an (NR) indicates no readings received. An (e) indicates that the water level has been estimated. An (w) indicates that the conditions were very windy, resulting in an inaccurate reading. Omatjenne Dam does not have abstraction facilities. The dam contents are according to the latest dam ...
See Details:
Namwater Dam Bulletin on Monday 27 November 2023
-
Dhaka, Nov. 27 — Nobel laureate Dr Muhammad Yunus has been appointed chair of the international advisory board of Moscow’s Financial University (under the government of the Russian Federation). On November 23, he joined a high-level strategic meeting with Prof Stanislav Prokofiev, Rector of the Financial University, and his colleagues. ...
See Details:
Dr Yunus appointed chair of Moscow Financial University's international advisory board
-
In a pivotal encounter at the International Cricket Council (ICC) Twenty20 World Cup Africa Final Monday, the Cricket Cranes faced Nigeria, knowing that a win could significantly boost their chances of securing one of the coveted tickets to the 2024 T20 World Cup in West Indies and the USA.Nigeria won ...
See Details:
Victory over Nigeria puts Uganda on the brink
-
Capture 1 The Bank Ghana (BoG) Monetary Policy Committee (MPC) has maintained the key policy rate at 30 percent, while introducing additional liquidity management measures to address excess liquidity and reinforce the disinflation process. Announcing the committee’s decision on Monday following its 115th meeting, BoG Governor Dr. Ernest Addison said ...
See Details:
BoG holds policy rate at 30%, tightens liquidity measures
-
Renita Holmes has been displaced four times in the past three years by rising rents With sea levels rising around the globe, Miami, in the US state of Florida, is facing an urgent need to adapt. As property investors turn their gaze inland, away from the exclusive low-lying beach area, ...
See Details:
When sea levels rise, so does your rent
-
Picture2 In a groundbreaking moment, Mrs. Adelaide Siaw Agyepong, CEO-American International School, has achieved yet another milestone by being crowned ‘Icon of Inspiration and Impact for the Year 2023’. The crowning achievement took place in Accra, where Mrs. Siaw Agyepong surpassed contemporaries to clinch this prestigious title at the 5th ...
See Details:
American International School CEO honoured as ‘Icon of Inspiration and Impact’
-
Freetown’s streets were almost empty on Sunday after a curfew was imposed Gunmen in Sierra Leone attacked a military barracks and freed hundreds of prisoners in a “co-ordinated and properly planned” attack, the country’s information minister has said. Sierra Leoneans spent Sunday under a nationwide curfew amid disarray in capital ...
See Details:
Sierra Leone prison breaks co-ordinated - minister
-
Freetown’s streets were almost empty on Sunday after a curfew was imposed Gunmen in Sierra Leone attacked a military barracks and freed hundreds of prisoners in a “co-ordinated and properly planned” attack, the country’s information minister has said. Sierra Leoneans spent Sunday under a nationwide curfew amid disarray in capital ...
See Details:
Address the rise of single parenthood
-
Freetown’s streets were almost empty on Sunday after a curfew was imposed Gunmen in Sierra Leone attacked a military barracks and freed hundreds of prisoners in a “co-ordinated and properly planned” attack, the country’s information minister has said. Sierra Leoneans spent Sunday under a nationwide curfew amid disarray in capital ...
See Details:
Hyundai Chief Picked as Auto Industry Leader of the Year
-
Freetown’s streets were almost empty on Sunday after a curfew was imposed Gunmen in Sierra Leone attacked a military barracks and freed hundreds of prisoners in a “co-ordinated and properly planned” attack, the country’s information minister has said. Sierra Leoneans spent Sunday under a nationwide curfew amid disarray in capital ...
See Details:
Unmarried People Under 35 Outnumber Married Ones
-
Freetown’s streets were almost empty on Sunday after a curfew was imposed Gunmen in Sierra Leone attacked a military barracks and freed hundreds of prisoners in a “co-ordinated and properly planned” attack, the country’s information minister has said. Sierra Leoneans spent Sunday under a nationwide curfew amid disarray in capital ...
See Details:
European interior ministers in Hungary to discuss migration
-
Freetown’s streets were almost empty on Sunday after a curfew was imposed Gunmen in Sierra Leone attacked a military barracks and freed hundreds of prisoners in a “co-ordinated and properly planned” attack, the country’s information minister has said. Sierra Leoneans spent Sunday under a nationwide curfew amid disarray in capital ...
See Details:
Japan on the watch for unlicensed taxis around Narita airport amid foreign tourism spike
-
Freetown’s streets were almost empty on Sunday after a curfew was imposed Gunmen in Sierra Leone attacked a military barracks and freed hundreds of prisoners in a “co-ordinated and properly planned” attack, the country’s information minister has said. Sierra Leoneans spent Sunday under a nationwide curfew amid disarray in capital ...
See Details:
ECOWAS to send high-powered delegation on solidarity visit to Sierra Leone
OTHER NEWS
Despite doing education at the university, Mellon Kenyangi, also known as Mama Bear, did not think of going to class, and teaching students was her dream job.“Since it was not ...
Read more »
213 Sri Lanka Cricket’s Chairman of Selectors, Pramodya Wickramasinghe reported to the Sports Ministry’s Special Investigation Unit( SMSIU) for the Prevention of Sports Offences yesterday for the second day. He ...
Read more »
137 Malindu Dairy (Pvt) Ltd., a leading food production company in Sri Lanka, won the Silver Award in the medium-scale dairy and associated products category at the Industrial Excellence Awards ...
Read more »
Africans Urged to Invest Among themselves, Explore Investment Opportunities in Continent Addis Ababa, November 27/2023(ENA)-The Embassy of Angola in Ethiopia has organized lecture on the “Foreign Investment Opportunities in Angola ...
Read more »
144 The dynamic front row player Mohan Wimalaratne will lead the Police Sports Club Rugby team at the upcoming Nippon Paint Sri Lanka Rugby Major League XV-a-side Rugby Tournament scheduled ...
Read more »
Dozens of people living with disabilities from New Hope Inclusive in Entumbane, Bulawayo on Saturday last week received an early Christmas gift in the form of groceries. The groceries were ...
Read more »
The East African Community (EAC) Summit of Heads of State has admitted the Federal Republic of Somalia to the regional bloc, making it its 8th member country. The decision was ...
Read more »