Buffett and Munger hit back at Musk over ‘moats’
The Tesla CEO did not remain silent, but tweeted that ‘saying you like ‘moats’ is just a nice way of saying you like oligopolies’
Omaha/New York — Elon Musk recently took aim at the idea a successful business needs a "moat" — a competitive advantage that keeps rivals at bay. The pace of innovation, he said, is more important in the long run. On Saturday, Warren Buffett and his business partner, Charles Munger, shot back. "Elon says a conventional moat is quaint, and that’s true of a puddle of water," Munger said. "It’s ridiculous. Warren does not intend to build an actual moat. Even though they’re quaint." Munger and Buffett were responding to a question at Berkshire Hathaway’s annual meeting about Musk’s comments this week. The pair often talk about trying to expand the "moats" around their businesses. "First of all, I think moats are lame," Musk said during an earnings call for his Tesla on May 2. "They’re like nice in a sort of quaint, vestigial way. But if your only defence against invading armies is a moat, you will not last long. What matters is the pace of innovation. That is the fundamental determinant...
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