The problem we have is because Most people always taught that " you only need a good job to become rich. These billionaires are operating on a whole other playbook that many don't even know exists.

I don’t own a Tesla but just got to try the latest FSD and it’s absolutely incredible. Under appreciated (for now) and profound technology.

Warren sounded a bit tired. Long live the king. He is a national treasure

Tesla stock swings too much to calmly accumulate and hold, After buying TSLA shares for just over 10 years, i'm struggling to make gains presently. How do i adjust or revamp my $2M portfolio? or should i consider some defensive investments?

After having Geico insurance for over 10 years I finally shopped rates and switched to another stable and well known company, paying half that I was at Geico. I’m not the only one who got tired of overpaying.

20 years ago, I followed Warren's advice, stayed away from AAPL, Steve died I missed out 😢. 5 years ago I followed my own analysis, bought TSLA. 😊

Surprised to see Buffet giving a nod to Nader. For those unaccustomed, Ralph Nader was a major factor in automobile safety regulations and many of the things we take for granted these days like seatbelts and airbags are standard fare today thanks in no small part to Nader. The auto companies fought him tooth and nail over this too to save money. Great documentary called An Unreasonable Man that details his many positive exploits.

Im a huge Buffett fan but i notice how his tone of voice and body language shifted to a bit of nervousness when he replied to this question. Particularly alsoAJs did

I just became a huge fan. The reason why Warren Buffet is so successful is his heart. He thinks about everyone not just his own success. Love it! Learn from the greatest!

These guys are upset that there won't be as many accidents lol

It’s so empty without Munger.

I've had a FSD Tesla for 3 years. Tesla is getting very close (within the next 3 years I believe) with every update they release. Honestly, my only problem with it at this point is it's too cautious. If they can make it more confident, I truly believe Tesla will have achieved full self driving with cameras only. Additionally, I live in Phoenix where there are self driving Waymo taxis (no driver). Driving will be optional within the next 10 years. Whether you choose not to buy a car and only use autonomous taxies or you buy a car and it drives itself. Either way, we're closer to that reality than people think.

I purchased 375 shares in January 2020 and knew it was a 10 year+ investment . Tesla's technology is only gaining momentum.

Buffett definitely tiptoed around this question. If Tesla FSD is truly effective, similar decreased business will occur in collision repair, police ticket incomes, ambulance chasing attorneys, etc. Fewer "totaled" vehicles means fewer new auto sales, but increase in service and maintenance as cars will have an uptick in life expectancy. Fewer vehicle deaths and injuries, etc.

Its a net positive. Accidents go down, lives are saved, less money is paid out.

Tesla is going to insure their own car.

Cost will come down significantly lower if accidents are reduced. The reason Tesla Insurance not available in all states because of individual states regulations requirements. It would question of when not if.

If accidents go down 50% loss ratios will plummet as well. Also Ajit has a great point about complexity of technology increasing the repair cost per accident. Sometimes it’s cheaper for the carrier to declare a total loss so it might actually make premiums on these kind of cars go up and not down.

The future belongs to those who believe in the beauty of their dreams. Success is a state of mind. I think I'm blessed because if not I wouldn't have met someone who is as spectacular as Expert Mrs Lucy Mary Liam.

FSD and Atnomus driving will cut down accidents and fatalities, ultimately reduce insurance rates and hurt insurance company business.

The caption for this video is very misleading. KZfaq trying to scare investors out of Tesla when warrens words were actually positive about Tesla

CYBER-CAB is the new product Tesla is working on. It's a driverless taxi. Likely to cost half or less per mile than Uber. Car insurance companies will ALWAYS make profits because insurance is mandatory on public roads. Tesla will save lives more lives. Everyone wins.

If fsd becomes really successful and is wildly adopted by 80% vehicles on the road，insurance cost will plummet.

I think that was a poor response from all members on the panel

Warren's answer to the question on reducing crashes with autonomous driving was excellent, IMO. If it happens, then it will be a net positive for society, though not necessarily for GEICO, or any other auto insurer. Luckily for BH investors, autonomous cars are not going to happen anytime soon. Five or six years ago, auto insurers and investors were all aflutter with worries their core business was about to be hollowed out by the imminent arrival of autonomous cars, rendering third party liability insurance redundant. Well, that talk has died , with the realization of how difficult it actually is to produce L5 vehicles ( i.e. actually autonomous). Musk's furious attempts to spin his FSD product as a real thing, to support the growth valuations that Tesla enjoys, is increasingly wearing thin, with more ppl seeing through the hype. In case any Tesla fan boys/gals take offense at me calling BS on "FSD" , and who may point out that Tesla has 10s of billions of miles driven , and that much more data than any other OEM, and ergo, closer to L5 than anyone else. Well, i say, if you have that many miles under your belt, and you still haven't solved the problem, you are never going to solve the problem, with that approach. GM's Super Cruise is not L5, more like L2.5 , but it actually does what it says on the tin, nothing more, and nothing less. That's a real product, not magical fairy tales.

Its getting to the point with all the sensors in cars and weight saving thin aluminum that if you even phart on a fender the vehicle is totaled. So while accidents may go down the cost per is still going up.

Warren is a business pioneer. God bless you Mr Buffet and thank you for your contribution.

last speaker made a good point. to paraphrase, when tesla self-driving car gets into an accident, the cost to repair/ replace is much much higher than your average lower end cost car and therefore insurance will justify maintaining the status quo on the cost in one way or another

It's refreshing to hear a billionaire say, 'good for society is what we're looking for'. Even if we have autonomous driving and accidents are reduced to zero there are emerging threats to property such as extreme weather events that will counter whatever savings are realized.

What those buckets are for can anybody tell me pls

Well, has there ever been a connection between premiums and the actual cost for the service…

Warren Buffet can certainly boost Global Economy by contributing in Cloud Software.

This reminds of the moment when Neil Armstrong and co. were saying privatising space travel wouldn't work... Hate to disagree with Warren but AI is on the exponential curve. FSD is around the corner. Car insurance will get gutted. (To Ajit's point, elec cars are already cheap and FSD is software.)

I think this will actually be good for car insurance companies since you will still need insurance and they can basically participate in a form of price-fixing with one another. Also in the scenario where there is an autonomous car that is far safer than a human driver there will be less accidents which means less insurance payouts.

I’d rather see money shift from insurance companies to equipment providers, if the auto accident deaths go down

Does Warren buffet have an auditorium for an office?

No mention of the insurance challenge of fully autonomous vehicles. However, from what was said, if they’re safer then there should be no insurance issues.

Half the frequency but double the severity. Sounds like higher volatility.

If Accidents go down, so do insurance payouts though.

I get it, the legend is always a legend. Who is going to the magnificent hero by the end of 21st century, meeting obligation like many.

Sounds like Buffet sees the vision and is prepared to buy Tesla stock at least as a hedge to his large insurance stake. Not too far away from that snowballing into him understanding the whole Tesla story. His endorsement gives all the traditional investors the green light to consider Tesla as well. One domino at a time.

Finally, someone in business said something positive about Ralph Nader….wow.

The end of Geico car insurance :)

Should compare to accident rate of taxi drivers not the national average

If you want to invest with Buffett, you must first live to be 93years old, drink Coke, and still have a clear head. Very few people can do this

fully autonomous driving has been 2 years away for the past 15 years

Read "1,000% Returns: Taking Advantage of the Stock Market's Gross Incompetence." And "Generational Wealth: Beginner's Business & Investing Guide."

So accidental rate dropped so significantly for the last few decades but insurance premiums keeps coming up and up? Makes total sense!!!

So “Ralph Nader did more to help the American consumer” than anyone! Thats good to hear.

If there are less accidents, even with lower fees, profit soars! BUT, the biggest cost to insurance companies is car theft! Stricter laws against theft and better technologies should be applied to bring down car theft.

Never have I heard Warren stumble as much as in this one 😂

The beauty with FSD is you don’t have to have it but why are people trying to stop it, it’s progress we’re after so let progress happen, some people are just money hungry

Although Warren Buffett has a reasonable if tentative response, you have to keep in mind that Warren's investment in BYD is in direct competition with Tesla. BYD's policy is that self-driving (and therefore reduction in accidents through automated driving) is not possible. There is plenty of old data that shows FSD has many fewer accidents, but Tesla needs new data focusing on how safe FSD V12 is compared to non-automated driving. Something that complicates that study is that non-automated driving of Teslas has terrible statistics because the cars are so powerful; many Tesla owners drive way too fast. FSD users don't drive so fast. The car slows itself down to match the road, weather and other conditions. That's not to way the current V12.3.6 is perfect.

Buffet invested on BYD Chinese EV manufacturer.

Reminder for me to watch this video in 2030

Best case scenario autonomous cars are still decades away from replacing most regular cars.

Tesla isn’t toying with insurance. They do it

The EV sector charging Up still in May. Tesla green Friday. FSRN up 148 % month .. Fisker with 24 Dealerships Globally. Polestar.. Joby Evtol Jets...EVTL . Vertical Aerospace...Plug... EVGO, more.

If Tesla brought down the cost of its vehicles and the repairs then it might be doable at that point but there's a long time horizon of proof that needs to happen before anything significant would take place bringing down insurance premiums.

I have a Tesla and use Tesla insurance (better price).. not GEICO (too expensive).

Is that a box of See's Brittle? haha

Sad to see charlie not in the show…

Assuming repair costs are equal for Tesla and other manufacturers per accident shouldn’t the reduce incident rate drop premiums? Tesla insurance IMO hasn’t been successful in the US because it is state regulated and hard to get admitted to states because of existing insurance and auto lobbies

Love Warren Buffet and he is one of my favorite business teachers. But, I just can’t bet against Elon Musk…he only goes after impossible tasks, and he always wins.

The old man is very good at implicitly talking up his own book.

Give Nader his credit. Unsafe at any speed changed the world.

Lower accident rates means lower payouts. Sounds like it might be a wash.

What happens to doctors when doc McCoy has us all living forever 😂😂😂 that will happens about the same time

So Berkshire can make a profit on fewer policies. That is the answer. Having not seen Warren in a while I do think the company needs a succession plan.

All I can say right now owning a Tesla vehicle is FSD is not accident free proof. It still makes mistakes. With much more humans driving cars vs FSD driving the cars, insurance rates won't change for a while.

tsla king

Self driving humans❤❤🎉🎉

You mean, with Tesla self-driving perfection, insurance claim frequency will go down but severity will go up, and overall cost up or down would be unknowable? The whole society's auto accident costs will go down, and hopefully near zero -- Elon wants to see no accidents involving Tesla. GM still will be making cars and may still run into Tesla.

Warren owns millions of shares of BYD, the Chinese auto company. Warren is not a techy at all. He is definitely old school. Tesla full self-diving will essentially eliminate all traffic collisions.

Insurance should not be both legally mandated, as well as being able to influence public choice on par with a dictator. When do we stop letting other people's money dictate our lives?

If prices of insurance are more affordable perhaps more people will take it out? ATM its too expensive for the average middle to lower class economically repressed person. People who are in a desperate situation will always forego insurance for food, shelter and education. The self driving taxis make sense if theyre reliable and safe especially if they're paid for directly by governments as a fleet incl the insurance. and run mainly on solar. Could earn advertising revenue as well from the entertainment system inside. Would look tacky if advertising is on the actual car. Otherwise a carpooling type situation where 2 to four owners perhaps in the same family neighbors or friendship group who live close by pool resources to buy one and it works for them during the day as an autonomous taxi. A car that actually earns its keep could have its advantages. On the plus side Hijacking and vandalism insurance would have an upswing.

Cross country FSD coming in 2016 per Captain K!

Of course everybody’s looking out for their cash flow. If there’s less accidents, then he’ll probably have to lower insurance rates bad idea.

Did I just hear them admit automated Teslas are safer vehicles? Maybe the CNBC old heads will finally listen…

some tap dancing going on there, its coming and they did not to see it coming.

but climate change related insurance will offset any loses from self-driving

There is no risk from Tesla self driving since there is and never will be Tesla self driving. There's Tesla Level 2 driver assistance and that's nowhere near level 5 self driving cars.

The Saltet nuts on his table tells the whole story

Tesla's insurance is much more expensive. From a cost perspective, it doesn't matter whether Tesla reduces accidents. It's Elon Musk's way of marketing his products.

I think at first lower accident rate will allow insurance companies to make more money. They pay out less. Allowing higher margins. But, they will be forced to lower their prices to match to accident rate. Each state has a government entity that oversees this business. It makes sure that they are compliant.

Textbook persuasion 101. Acknowledgment of the opposition then discredit the evidence of the opposition. Tesla software reduces accidents. Acknowledgement. BUT (discrediting) the cost of few accidents skyrocketing. The insurance companies will keep their profits. They are charities. If Tesla reduces accidents, that will not result in lower insurance rates.

So much about insurance , not the fact that it saves life😂 Always money first at WS

We should do everything to lower car accidents Who cares about profit and business. It's such a wrong way to look at money at the price of human life.

WE ❤❤❤❤❤❤ TESLA

He couldn’t talk his way out of that one

These two clearly do not understand the shift that is occurring right now.

So are they saying that full-self driving robots-taxis will shift the financial responsibility from the vehicle owner to Tesla? Isn’t the driver responsible for the accidents that do occur?

Well uh if ah ih ha ah ih d buh mah wah sh. 😂 jk (he the greatest. A lot of smart people talk this way.)

Tesla is disrupting everything too fast for the hedge funds to accept, much wealth will be lost once they realize many industries will soon be obsolete. It’s my belief that this is why Elon is being attacked for not going along with hedge fund wealth. This is also probably why Fidelity is delaying proxy materials from being released to retail investors like myself, as of May 6th still can’t vote.

It's laughable to think that self driving cars will be on the streets within the next 25 years. It's real easy to have a way more where massive investment and safe guards create less accidents statistically. This is new tech that wants to pass regulatory approval so they will only implement in the safest scenarios. Try putting the cars on boaton streets in the middle of a nor'easter and we will see if people have more or less accidents than the self driving vehicles.

Truth is no matter how much the number of accidents fall, the insurance company will continue to make money since drivers will still be required to buy insurance. Think about it. Even if they have to pay for your damage, they are going to increase your premium anyways. So the game is already rigged to their favor to begin with.

But before prices come down…whooooo weeeee all the insurance bills and none of the outlay until it all catches up.they will have their best years ever…then it will begin to be destroyed

Elon Musk runs a company entirely on his personality. Warren Buffet runs a company with 150 billion in cash and disclosed insurance reserves to match.

I didnt get a damn thing of what he said

Just borrower every dollar you can and buy TSLA. Everyone will be billionaire in 5 years!