Tesla and Spacex CEO Elon Musk has shared his recommended investment strategy, which he believes “will serve you well in the long term.” Some people noted that Musk’s strategy is similar to one adopted by Berkshire Hathaway CEO Warren Buffett.
Elon Musk’s Investment Advice
Tesla and Spacex CEO Elon Musk gave some investment advice Sunday, noting that he has been asked about it “a lot.”
He explained that investors should buy stock in several companies that make products and services that they believe in. They should only sell if they think those products and services are trending worse, Musk continued, emphasizing that they should not panic when the market does. “This will serve you well in the long term,” the Tesla boss stressed.
At the time of writing, Musk’s tweet has been liked more than a million times and retweeted 110K times.
Responses to his tweet were mixed. Some people agreed with Musk while others argued about different aspects of his advice, such as saying severely overvalued investments should not be held long term and not all market reactions should be ignored. A few took Musk’s advice as a warning that his electric car company, Tesla (TSLA), may have some bad news soon.
A number of crypto proponents said they have been doing just as Musk recommended with cryptocurrency, supporting the projects they believe in regardless of the underlying coin prices.
Some investors noted that Musk’s advice is similar to the value investing strategy touted by Berkshire Hathaway CEO Warren Buffett. The Oracle of Omaha talked about value investing in some detail over the weekend as he explained why he is not investing in bitcoin or other cryptocurrencies.
Several people pointed out that Musk is using this strategy in his bid to buy Twitter. The world’s richest billionaire struck a deal to buy 100% of the social media platform for about $44 billion last week.
In March, Musk also gave some investing advice while discussing inflation. He tweeted:
As a general principle … it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
The Tesla boss also revealed at the time that he still owns and will not sell his bitcoin (BTC), ether (ETH), and dogecoin (DOGE).