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Hard to predict if there will be electric vehicle winners

Buffett & Munger2023-05-08video2:46Open original ↗

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SpeakersQuestioner1Warren1Charlie1Other1
[0:00]
QuestionerLooking at the global trends, it increasingly does seem that zero-mission vehicles may have finally reached the cusp of mass adoption. Do you see any opportunities in this space, either in specific vehicle manufacturers or in related technologies?
WarrenWell, I would say that Charlie, and for long have felt that the auto industry is just too tough. You know, the Ford Motor Company, I mean, Henry Ford looked like he owned the world with the Model T. And he brought down the price dramatically. He took up wages dramatically. He might have been with a different personality or some different views. He might have been elected president of the United States. And now with 330 million people. All brands in the United States have like 18,000 dealers or something. It's just a business where you've got a lot of worldwide competitors. They're not going to go away. And it looks like there are winners at any given time, but it doesn't get you a permanent place. And it's not a business where we find it fascinating to be in. We like our dealership operation. But I don't think I can tell you what the business. the auto industry will look at, look like five or ten years now. I do think that you're right that, you know, you will see a change in the vehicles, but you won't see anybody that owns the market because they change the vehicle. Charlie?
CharlieWell, the electric vehicle is coming big time, and that's a very interesting development. At the moment, it's imposing huge capital costs and huge risks. And I don't. like huge capital costs and huge risks. And we're subsidizing it in the United States, and we're actually doing it, try putting in a pro-labor. I mean, it is subject to politics like you can't believe, too. But it's going to be with us. We're not going to quit driving cars. And American public has a love affair with them. But I think I know where Apple's going to be in five or ten years, and I don't know where the car companies are going to be in five or ten years. And I don't know where the car companies are going to be in five.
OtherWe're done here.