Becky Quick: You’re taking me too literally and taking me away from the real story here. This is like a war of words between you, Charlie, and Elon. And I just want to know, do you know Elon Musk?
Warren Buffett: I’ve never said anything to anyone about Elon. I mean, you’re kind of tempting me into doing that.
Becky Quick: Yes.
Warren Buffett: But I never — you know, I — people don’t like his cars and everything, but —
But someone said now we’re talking about funding. What about that this morning? I felt like I had heard it before.
Becky Quick: Yes. Well, actually, Warren, Andrew, I just read some headlines that seem to indicate that Tesla may be returning to the market to raise additional funds. I’m not completely sure.
Warren Buffett: Well, that’s—
Becky Quick: All I heard was the headlines.
Warren Buffett: I call it counter-revelation. So — (laughter) — you know, I think it was just a few days ago, they said they didn’t need a loan. that –
But, you know, he’s trying things to improve the product. And I salute him for that. And it is up to the American people to decide whether it is successful or not. And it’s not easy. you know? So many —
It would probably be easier to develop a new car than to compete with Snickers.
However, some products have a huge moat. I think it’s probably Elmer’s glue. You know, WD-40. I mean, there you go.
You can — there are just certain things that you’re not — more dissatisfied and more inclined to pursue — and by the way, you know, the iPhone has a horrible moat.
So people who have iPhones, or people who have other phones. However, they want to continue using their existing product. They want a new version. It’s easier for them. They learn how to do everything and their lives are built around it. And, and—
The moat is very convenient.
Costco has a moat in people’s hearts. I mean, you know—
Amazon can increase Prime prices by 20 percent. And you can’t do that unless you build something in the image of Amazon Prime that’s grounded in reality, that you get a lot for your money, and that you want to use it. And you can raise the price by $20.
But if you’re selling a product, you can’t do that. We need a moat.
