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Jeff Bezos, Elon Musk and Warren Buffett are concerned.
Amazon CEOs Tesla and Berkshire Hathaway expressed a sense of confusion in their statements about the stock market.
What do the rich do with their money? A look at the wallets of wealthy market participants is particularly worthwhile in times of crisis. It is particularly exciting when they also talk about the actions of their own companies. Last week Wall Street had three views. First, Jeff Bezos, the current leader among the super rich, commented on the Amazon booth. Soon after, Tesla CEO Elon Musk followed up with interesting thoughts on Tesla’s actions. And finally, Warren Buffett’s virtual shareholder meeting in Berkshire Hathaway followed over the weekend, as the Oracle of Omaha reflected on the state of their businesses as usual.
Despite the notable differences between these three personalities, the parallels are visible. In particular, they reflect the current state of mind of the market. In all the statements there is a feeling of confusion, even conflict. All three CEOs remain very optimistic about the long-term development of their companies. But in the short term they are unsolved. They behave like confused teenagers, on the one hand advancing with their fists closed, but on the other hand they are afraid to look around the corner.
In an unusually long letter to shareholders, Bezos made it clear to his co-owners that they should buckle up in the short term. It took a lot of investment to keep his Internet shopping empire running smoothly. You can’t get rid of the feeling that the founder of Amazon is almost embarrassed that his shares traded to a maximum before the quarterly figures were released.
The situation is similar with his up-and-coming rival Elon Musk, who published Tesla’s surprisingly positive numbers on Wednesday and praised the new major advances from the electric car maker at the subsequent conference. As a result, stocks soared just below February’s all-time high. But just 36 hours later, Musk commented on Twitter about Tesla’s stock price, which he believes is too high.
Buffett is also forced to use digital media to target his investors these days. But things were less turbulent here, especially as the 89-year-old Omaha investor limited himself to a video monologue. Buffett spoke of the long-term economic strength of the United States and reaffirmed the solid position of his companies. But in the short term, he apparently sees little opportunity to make new investments. By contrast, Buffett sold numerous stakes in April, such as airlines, which Buffett said will remain weak for a long time.
In all three cases, there is some internal conflict between justified short-term concerns and still very positive prospects for long-term economic development. Unfortunately, this uncomfortable feeling is also noticeable in many other investors. However, Buffett has helpful advice on this. Those who can afford it are the best to stay calm and do nothing with their wallet. Those who do not, it is better to observe the market from the outside.
