Becky quickly: You’re taking me literally and straying away from the real story, which is sort of a war of words between you and Charlie and Elon. And I just want to – do you even know Elon Musk?
WARREN BUFFETT: I’ve never said anything about Elon to anyone. I mean, you know – you’re kind of luring me into doing it, but –
Becky quickly: I am.
WARREN BUFFETT: But I’ve never – you know, I – people liked his car and everything, but –
But someone mentioned that they’re talking about funding now. Something about it this morning. I thought I had heard this before.
Becky quickly: Yes. Well, Warren – Andrew just read some headlines where it looked like – Tesla – might be going back to the market for additional financing. I’m not entirely sure.
WARREN BUFFETT: Well, that’s –
Becky quickly: All I heard was – all I heard was the headline.
WARREN BUFFETT: That’s what I call a counter-revelation. I mean – (laughs) – you know, because I think it was just a few days ago when they said they didn’t need funding. It –
But you know, he’s trying to do something to improve a product. And I bow to him. And the American public will decide whether it is a success. And – it’s not easy. You know? So much –
It’s probably easier to develop a new car than to compete with Snickers.
But some products have great benefits, you know. That’s probably the case with Elmer’s Glue. You know, WD-40. I mean, here we go.
You can – there are just certain things that you’re not very happy with and you’re looking for – and I would say, by the way, that the iPhone, you know, has a great moat.
I mean, people who have an iPhone – or maybe another phone. But they want to continue with the product they have. You want the new version. It’s just easier for them. They’ve learned how to do everything, and their lives are built around it, and all that, and–
Moats are very useful.
Costco has a moat in people’s minds. I mean, you know –
Amazon can increase the price of Prime by 20 percent. And you can’t do that unless you’ve built something that fits the image of Amazon Prime, which is based on the reality that you get a lot for your money and want to use it. And then you can increase the prices by $20.
But if you’re selling, you know, if you’re selling a mass-produced product, you can’t do that. You need a moat.