Elon Musk is the new Oracle.
This title, which is accompanied by respect for both Wall Street and Main Street, was previously attributed to legendary investor Warren Buffett, 91, who is called the Oracle of Omaha.
Buffett inspires respect, admiration and devotion to the point where the shareholders’ meeting of his conglomerate Berkshire Hathaway (BRK.A) – Get Berkshire Hathaway Inc. A Class A report has become over the years a kind of pilgrimage for his legion of fans who often travel to all parts of the world to listen and see him, as well as his business partner Charlie Munger. Each of its financial councils is dissected and interpreted. Both bosses and amateur investors try to put his recommendations and opinions into practice.
If for decades many investors and CEOs courted Buffett in the hope of being named “heirs,” no figure has emerged.
But ironically, it was on the night of the Berkshire Hathaway shareholders’ meeting, the first in person since the Covid-19 pandemic, that Elon Musk forcibly chose to take over from Buffett.
Musk accepts his new status
Enough symbol!
Observers of the 50-year-old Musk know that the billionaire calculates his every move well. It is therefore not insignificant that he chose Buffett’s holiday to finally embrace the role of Oracle, which his nearly 90 million Twitter followers have been pushing him to play for many months. In general, the richest man in the world seems to say that a new era has begun. An era in which he is the center.
Therefore, the serial entrepreneur will start providing financial advice to those who come to ask him for advice. His communication and his moves, which have already been closely monitored, will be even greater.
“Because I’ve been asked a lot: Buy stocks in a few companies that make products and services that * you * trust,” Musk wrote on Twitter early on the morning of May 1st.
He added: “Sell only if you think their products and services are doing worse. “Don’t panic when the market does,” Musk said. “It will serve you well in the long run.”
The tweet has already been liked over 450,000 times at the time of writing.
Now we will have to get used to saying the Oracle of Austin, Tesla’s headquarters from 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 was the answer given by God to a personal question that usually concerns the future and most often requires interpretation. In extension, the term “oracle” also refers to the human mediator who conveys the answer to the gods, as well as the sacred place where the answer is given.
So it’s no surprise that Twitter users began bombarding Musk with questions about the best investments after the tech mogul put his clothes on the oracle.
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“What about real estate, is it a good investment?” One user asked.
“Elon, I put all my life savings into a Doge coin when I was 70 and have held it ever since,” said another used, citing Dogecoin meme coin, Musk’s favorite crypto. “I had to take a second mortgage against my house, sell my car and give plasma to connect the two ends. Should I continue Hodl?”
“What do you think about buying a metaverse / digital land?” Another user asked the billionaire.
Musk did not answer these questions, but his first oracle advice was accepted as gospel by some fans.
“Investing in what you love is great advice to live by,” said Lex Friedman, whose podcast has already hosted Musk.
“These are good, simple instructions,” said another user.
Musk Blasts Index Funds
Shortly before it officially became Oracle, Musk sharply criticized index funds in a stock market launched by technology investor Mark Andreessen.
“The shareholders themselves are basically not applying pressure, and their management agents – professional investment managers – are. See, for example, Larry Fink, who owns ~ 0.0000001% of the capital he is talking about,” wrote Andreesen, referring to the CEO of BlackRock .
“Exactly, decisions are made on behalf of actual shareholders who are against their interests,” Musk said. “Big problem with index / liability funds.”
When a consumer agrees, he adds that “the reason the market reflects the foundations of companies is that arbitrageurs (active investors) do it. What happens when everyone is passive?” Musk did not hesitate.
“We need to get back to active investment,” Musk said. The liability has gone too far.
Musk has already managed to convince Wall Street, as illustrated by his continued acquisition of Twitter (TWTR) – Get a report on Twitter, Inc. for $ 44 billion. According to press reports, Tesla’s CEO (TSLA) – Get Tesla Inc Report has provided a significant portion of funding from investment banks, without providing details of its business model on Twitter, for example.
Musk’s trust and confidence are also behind Tesla’s huge market capitalization, which is currently $ 902.11 billion at the time of writing.
No car group is near.
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