This title, accompanied by respect for both Wall Street and Main Street, has previously been attributed to legendary investor Warren Buffett, 91, called Oracle of Omaha. Buffett has inspired respect, admiration and devotion to the point where the general meeting of the shareholders of the Berkshire Hathaway heterogeneous group (BRK.A) – Get Berkshire Hathaway Inc. A Class A exhibition has over the years become a kind of pilgrimage for his legion of fans who often travel to all parts of the world to hear and see him, as well as his business partner Charlie Munger. Every financial advice is analyzed and interpreted. Both bosses and amateur investors try to put his recommendations and views into practice. If for decades, many investors and CEOs have been flirting with Buffett in the hope of being called “heirs”, no personality has emerged. But ironically, it was the night of the Berkshire Hathaway shareholders’ meeting, the first in person after the Covid-19 pandemic, that Elon Musk chose to take over from Buffett.
Musk embraces his new position
Enough symbol! For observers of the 50-year-old Musk, they know that the billionaire calculates his every move well. It is no coincidence that he chose Buffett’s celebration day to finally embrace the role of Oracle that his nearly 90 million followers on Twitter have been pushing him to play for many months. Basically, the richest man in the world seems to be saying that a new era has begun. An era that is the focus. The serial entrepreneur will now start providing financial advice to those who come to him for advice. His communication and movements, which were already closely monitored, will be even more. “Because I’ve been asked a lot: Buy shares in a lot of companies that produce products and services that * you * believe in,” Musk wrote on Twitter early in the morning of May 1st. He added: “Only sell if you think their products and services have a worse trend. Do not panic when the market does,” Musk said. “This will serve you well in the long run.” The tweet had already been liked over 450,000 times by the time it was written. Now we have to get used to saying The Oracle of Austin, the headquarters of Tesla since the end of 2021 and the city where Musk now lives, not far from SpaceX, the aerospace company he founded to conquer Mars.
Fans love it
In ancient Greece, the Oracle is the answer given by God to a personal question that generally concerns the future and most often requires interpretation. Consequently, the term “oracle” also denotes the human mediator who transmits the answer of the Gods as well as the sacred space where the answer is given. So it’s no surprise that Twitter users started bombarding Musk with questions about the best investments as soon as the tech mogul put on his oracle clothes. Scroll to continue “What about real estate, is it a good investment?” asked a user. “Elon I put all my life savings in Doge currency when it was 70 ¢ and I’ve kept it ever since,” posted another used, Dogecoin meme, Musk’s favorite cryptocurrency. “I had to get a second mortgage on my house, sell my car and donate plasma to make ends meet. Am I continuing the Hodl?” “What do you think about the conversion / digital land markets?” another user asked the billionaire. Musk did not answer these questions, but his first advice as an oracle was considered a gospel by some admirers. “Investing in what you love is great advice for living,” said Lex Fridman, whose podcast already featured Musk. “These are good, simple instructions,” said another user.
Musk Blasts Index Funds
Shortly before Oracle became official, Musk sharply criticized index funds in an exchange initiated by technology investor Marc Andreessen. “It is not the shareholders themselves who are pushing, but their managers – the professional investment managers – see Larry Fink, for example, who owns ~ 0.0000001% of the capital he is talking about,” Andreessen wrote. to the CEO of BlackRock. . “Exactly, decisions are made on behalf of real shareholders who are against their interests!” commented Musk. “Significant problem with index / passive funds.” When one user agreed, he added that “the reason why the market reflects the fundamental size of companies is because arbitrageurs (active investors) do it. So what happens when everyone is passive?” Musk did not hesitate. “There has to be a shift to active investment,” Musk said. “Liabilities have gone a long way.” Musk has already managed to convince Wall Street, as evidenced by the ongoing acquisition of Twitter (TWTR) – Get Twitter, Inc. Report for $ 44 billion. According to press reports, the CEO of Tesla (TSLA) – Get Tesla Inc Report has secured a significant portion of funding from investment banks without providing details about his Twitter business model, for example. Trust and confidence in Musk also lie behind Tesla’s huge market capitalization, which currently stands at $ 902.11 billion at the time of writing. No group of cars is nearby.
