Latest
Recommended
Published: Tue, May 08, 2018
Economy | By Melissa Porter

'Super super serious': Elon Musk tweets about dipping into candy business

'Super super serious': Elon Musk tweets about dipping into candy business

"If your only defense against invading armies is a moat, you will not last long", said Musk, adding that constant innovation is what makes a company successful. While Musk has a habit of sharing all his ridiculous ideas which include building flamethrowers and sell them to fund his tunnel-digging project, using party balloons for rocket launches and building a cyborg dragon, he also has a habit of making some of this dreams a reality. While it might've seemed like another random venture Musk chose to embark on, like his sale of flame throwers or hats, the billionaire was actually teasing Berkshire Hathaway CEO Warren Buffett. Buffett is also a longtime proponent of what he calls competitive advantage "moats" as an investment strategy.

Buffett said during Berkshire Hathaway's annual meeting on May 5 that Musk was wrong to think that defensive moats - the qualities that make a business appear hard to compete with - are "lame".

Not everyone was enamored with the idea of Elon Musk starting a new company.

"Certainly you should be working on improving your own moat and defending your own moat all the time", Buffett said. The two sparred over conflicting business models, with Buffet-who is the owner of Sees Candies-commenting that Musk wouldn't "want to take us on in candy". "There are some pretty good moats around".

"I'm starting a candy company & it's going to be fantastic", he wrote in a Twitter post on Saturday. But Musk went ahead and doubled-down. If nothing else, the whole thing is an interesting juxtaposition of reserved and time-tested old-economy captain of industry versus brash upstart Silicon Valley disruptor. All this seems interesting but can Elon Musk be the real-life Willy Wonka?

Musk said that any non-Tesla contractors who don't have a Tesla employee vouch for them "will be denied access to our facilities and networks on Monday morning". "I can't criticize anybody else for wise-assery".

Like this: