BECKY QUICK: You take me actually and stepping away from the true story right here, which is type of this disagreement between you and Charlie and Elon. And I simply need — do you even know Elon Musk?
WARREN BUFFETT: I’ve by no means mentioned something to anybody about Elon. I imply, you understand — you are baiting me a bit bit to do it, however —
BECKY QUICK: I’m.
WARREN BUFFETT: However I’ve by no means — you understand, I — individuals like his automobile and the whole lot, however —
However any individual talked about that now he is speaking about financing. One thing this morning about that. I believed I heard that earlier.
BECKY QUICK: Sure. Nicely, truly, Warren — Andrew simply learn some headlines the place it appeared like they might be — Tesla — could also be going again to market to choose up some further financing. I am not solely positive.
WARREN BUFFETT: Nicely that is —
BECKY QUICK: All I heard was the — all I heard was the headline.
WARREN BUFFETT: That is what I name a counter-revelation. I imply — (laughs) — you understand, as a result of I believe it was only a few days in the past they mentioned they would not want financing. It —
However, you understand, he is attempting one thing to enhance a product. And I salute him for that. And the American public will determine whether or not it is a success. And — it isn’t straightforward. ? So loads —
It is in all probability simpler to develop a brand new automobile than it’s to compete with Snickers.
However some merchandise have terrific moats, you understand. In all probability Elmer’s Glue does. , WD-40. I imply, there you go.
You may — there’s simply sure issues that you’re not in — a lot inclined to be dissatisfied with and search — and I might say that, by the way, that the iPhone, you understand, has a terrific moat.
I imply, those that have an iPhone — or perhaps have another cellphone. However they need to proceed with the product that they have. They need the brand new model. It is simply simpler for them. They’ve realized how one can do the whole lot, and their life’s constructed round it, and all of that, and —
Moats are very helpful.
Costco has a moat in individuals’s thoughts. I imply, you understand —
Amazon can elevate the worth of Prime, you understand, 20 %. And you’ll’t do this until you have constructed one thing inside that picture of the Amazon Prime, that is primarily based on actuality, that you will get loads to your cash and you are going to need to use it. After which you’ll be able to elevate costs $20.
However when you’re promoting, you understand, when you’re promoting some commodity product, you’ll be able to’t do this. You want a moat.
