Warren Buffett and Elon Musk
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“It is not a straightforward enterprise,” Buffett advised shareholders on the Berkshire Hathaway annual assembly. “The success of the auto firms entering into the insurance coverage enterprise might be as probably because the success of the insurance coverage firms entering into the auto enterprise.”
Musk advised analysts in an earnings convention name final month that Tesla could be launching its personal insurance coverage product later in Could. He mentioned that Tesla has “direct data” of an individual’s threat profile “primarily based on the automobile,” which provides it an “data arbitrage alternative.”
Buffett will not be impressed, nonetheless.
“I might wager in opposition to any firm within the auto enterprise” entering into insurance coverage, he mentioned. “I fear far more about Progressive.”
About one third of Berkshire Hathaway’s enterprise is within the insurance coverage area and that features Geico. Earlier than the annual assembly on Saturday, Buffett mentioned Geico’s worth has risen greater than $50 billion.