Buffett and Munger hit back at Musk over 'moats'

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Buffett and Munger hit back at Musk over 'moats'

Yes, that's right. Musk posted on his Twitter page in the wee hours of Sunday morning that the supposed candy company is "going to be amazing", even dismissing any notion that this might be one of his occasional attempts of humour.

Elon Musk has been known for innovative ideas and ventures which seem to pave the way for the future.

Musk, who'd been kind of quiet on Twitter, revealed he plans to get into the candy game ... so any references he makes to Mars will likely need further clarification.

On Monday, Tesla began the process of what Chief Executive Elon Musk called scrubbing the "barnacles" off of the company with what was described as a new, brutal regime with regards to Tesla contractors.

It was during that call when Musk said that Tesla's use of third-party contractors had "really gotten out of control", and that there was about to be "a lot of barnacle removal" going on at Tesla's facilities.

So whether or not Musk actually intends to start a candy company, the key is to never underestimate the man's random claims.

Munger and Buffett were responding to a question at Berkshire Hathaway's annual meeting about Musk's comments this week. "They are nice in a sort of quaint, vestigial way".

But then again if you'd asked me how seriously we should have taken this tweet from Christmas Eve, I'd have said the same and yet. If your only defense against invading armies is a moat, you will not last long.

Last week, Musk criticized Buffett's investing strategy of looking for companies with a "moat", or a buffer to maintain an edge over competing brands or business models. What matters is the pace of innovation.

This could be seen as a direct challenge to Warren Buffet's iconic See's sweets company which has been owned by the legendary investor for 4 decades. Let's see how Musk creates Willy Wonka's chocolate factory in the coming years.

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