The 1999 Warren Buffett Quote That Should Terrify EV Investors
Investors have recently become very enthusiastic about electric vehicle companies. Thanks to vast improvements in battery technology over the past decade, EVs are now getting closer to cost parity with gas-powered internal combustion engines. When you combine that with concerns over global warming and the trend toward ESG investing, the growth prospects for EVs, which only have a 2.8% share of new vehicle sales today, seem bright indeed.
But before you invest in any of the EV companies out there -- many of which are now going public to raise money at favorable valuations -- heed Warren Buffett's 1999 warning about investing in growth industries. He gave the warning during the 1999 Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) annual meeting on the eve of the dot-com bust, but the concept still applies today.
All-electric vehicles are the revolutionary transportation innovation of the early 21st century, just like the internal combustion engine tantalized investors at the beginning of the 20th century. Imagine being an informed investor in the late 1800s and getting an early look at the first automobiles. No doubt, many would have invested in an invention that was sure to make early investors' fortunes.
The same could also be said of airlines. Obviously, the airplane was going to revolutionize travel and change society forever going forward. So it must have been a promising investment too, right?
In 1999, Warren Buffett and partner Charlie Munger were asked about potentially investing in internet communications stocks, which skyrocketed after the spread of the internet in ...
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