Warren Buffett, American business magnate dubbed the “Oracle of Omaha” could not conjure up a profitable premonition for tech giant Apple if it decided to follow through on a foray into the automotive industry with a purchase of automaker Tesla, calling it a “very poor idea” in an interview with Fox Business.
Buffett is the second-largest holder of Apple stock with an equity stake worth close to $56 billion. While he dismissed the idea of Apple entering the car business, he did say Apple CEO Tim cook has his staunch support.
“I will support what Tim Cook does,” said Buffett. “But I think it will be a very poor idea to get into the auto business.”
Nonetheless, Buffett, who turned 88 yesterday, cited a fickle auto industry and stiff competition as reasons for Apple to steer clear of autos.
“It’s not an easy business,” said Buffett. “You can win in auto one year and lose the next. You’ve got a dozen big companies out there with resources. They’re going to keep coming. They’re going to copy what you do.”