The man is Warren Buffett.
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Musk was considering launching a candy startup to take on Warren Buffet. He scrapped the idea after failing to find a chocolate or nougat that could topple the investor.
See's Candies has a strong brand and loyal customer base that act as a "moat against competition" according to a May 18th argument by Warren Buffet. He said that Musk would be foolish to challenge the chocolate maker.
Musk responded to the insult by saying that he was starting a candy company. It seemed like a joke, but the CEO of the two companies said in a recent interview that he seriously considered the venture and researched its potential.
Musk told the satirical news website that he tried to find a better candy.
The billionaire invited his followers, as well as employees of both companies, to send him their favorite candy. He liked some of the chocolate and peanut brittle, but nothing was exceptional.
He told The Babylon Bee that he couldn't figure out a candy that was better than other candy. I don't want to have a lot of candy.
Musk said that he wouldn't start a business without a better offer. He said that if a company does not provide great products and services, it should not exist.
Musk backed down, and that won't be a surprise to Buffett. The investor has used the candy business to demonstrate the power of brands and customer habits, as well as the difficulty of competing with a brand like Snickers.
He said at the 2002 annual shareholder meeting that sodas and candy bars are things that you don't fool around with once you're happy.
In his letter to shareholders in 2011, Buffet made it clear that the top candy brands will remain popular in the future.
He said he didn't know what oil, wheat, or cocoa would be selling for next week or next month or next year. People are going to eat Mars bars and chewing Wrigley gum.
The value of strong brands like Hershey's and Snickers has been trumpeted by the chief of the company.
Customers will continue buying candy no matter what, and manufacturing the products requires little capital investment, according to Warren Buffet. "That's the best investment you can make in an inflationary world," he said.
Musk gave up disrupting See's because he couldn't find a better product, but he believes the company's moat extends beyond its tasty chocolates. See's low capital costs, brand loyalty, and great management team have been called the investor's "dream business" by him.
Business Insider has an original article.
