BECKY QUICK: You take me actually and stepping away from the actual 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 recognize — you are baiting me a bit of bit to do it, however —
BECKY QUICK: I’m.
WARREN BUFFETT: However I’ve by no means — you recognize, I — individuals like his automotive and every part, however —
However any individual talked about that now he is speaking about financing. One thing this morning about that. I assumed I heard that earlier.
BECKY QUICK: Sure. Nicely, truly, Warren — Andrew simply learn some headlines the place it regarded like they might be — Tesla — could also be going again to market to select up some extra financing. I am not totally 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 recognize, as a result of I believe it was just some days in the past they mentioned they would not want financing. It —
However, you recognize, he is making an attempt one thing to enhance a product. And I salute him for that. And the American public will resolve whether or not it is a success. And — it is not simple. You recognize? So lots —
It is in all probability simpler to develop a brand new automotive than it’s to compete with Snickers.
However some merchandise have terrific moats, you recognize. In all probability Elmer’s Glue does. You recognize, WD-40. I imply, there you go.
You’ll be able to — there’s simply sure issues that you’re not in — a lot inclined to be dissatisfied with and search — and I’d say that, by the way, that the iPhone, you recognize, has a terrific moat.
I imply, those who have an iPhone — or possibly have another cellphone. However they wish to proceed with the product that they have. They need the brand new model. It is simply simpler for them. They’ve realized the way to do every part, 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 recognize —
Amazon can increase the value of Prime, you recognize, 20 %. And you may’t do this except you’ve got constructed one thing inside that picture of the Amazon Prime, that is primarily based on actuality, that you will get lots on your cash and you are going to wish to use it. After which you may increase costs $20.
However should you’re promoting, you recognize, should you’re promoting some commodity product, you may’t do this. You want a moat.
