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Jim Cramer says people think Elon Musk is losing his edge or ‘turning into an evil genius,’ but Warren Buffett never fails in his promises

Jim Cramer says people think Elon Musk is losing his edge or ‘turning into an evil genius,’ but Warren Buffett never fails in his promises

TV personality Jim Cramer addressed investors’ differing feelings toward Wall Street titans Elon Musk and Warren Buffett on CNBC on April 12.

Cramer emphasized that while Buffett continues to earn the admiration of investors, Musk has faced criticism for Tesla Inc.’s declining stock price.

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“We operate in a what-have-you-got-the-latest-for-me industry. Buffett delivers consistently,” Cramer said. “However, Musk does not currently offer any lucrative opportunities. For many on Wall Street, that is all that matters.”

According to Cramer, support for Musk will only continue if Tesla stock flourishes. Initially hailed as a “genius” for his innovations in electric vehicles, Musk now faces skepticism as Tesla’s shares have tumbled more than 30% this year. Observers cite falling prices for Tesla vehicles and increasing competition from Chinese automakers as factors. Concerns are also growing that Musk is too distracted by other business ventures, such as his acquisition of X, formerly known as Twitter.

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“With the recent cuts and lowered price targets, skepticism toward Musk is increasing,” Cramer said. “It appears that the valuation was more for Tesla’s market performance than for Musk himself.”

But Cramer remains optimistic about Musk’s potential.

“Even as Tesla struggles and its stock prices fall, I have to remind everyone of Musk’s genius,” Cramer said. “However, some now speculate that he could lose his innovative edge, or worse, turn into an ‘evil genius’ – claims that I find unfair, although life often is.”

Conversely, Buffett’s investment prowess is beyond question, Cramer said. He praised Berkshire Hathaway for its robustness, driven by a diverse portfolio and a strong insurance sector, with Geico standing out as both effective and economical.

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“The choice for Buffett is easy for investors; his strategies and Berkshire Hathaway’s performance are nothing short of stellar,” Cramer said.

While Cramer offers valuable insights into investor sentiment, it’s important to recognize that comparing Musk and Buffett is like comparing apples and oranges. Their investment philosophies and areas of expertise lie on opposite sides of the spectrum.

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Musk is a visionary entrepreneur who thrives on disruption. He takes calculated risks by venturing into uncharted territory with companies like Tesla and SpaceX. It’s about the future, about pushing boundaries and pursuing long-term transformative change.

Buffett, on the other hand, is a value investor who prioritizes stability and established companies with proven track records. He focuses on the present and the long term through a lens of consistent, reliable returns. He doesn’t like risks and invests in what he knows and loves. Buffett’s success, based on steady and predictable growth, would not have been possible if he had followed Musk’s high-risk, high-reward approach.

The most important conclusion is that there is no one ‘correct’ investment style. Just as Musk and Buffett excel in their respective fields, investors come in all shapes and sizes. This is where financial advisors play a crucial role. A qualified advisor can assess your risk tolerance, financial goals and investment timeline. By understanding your unique profile, they can recommend a portfolio that matches your risk tolerance.

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This article Jim Cramer Says People Think Elon Musk Is Losing His Edge Or ‘Turns Into An Evil Genius,’ But Warren Buffett Never Fails To Deliver originally appeared on Benzinga.com

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