Warren Buffett and Elon Musk are shaking up markets this year. Here’s a look at the ‘Buffett Bump’ and the ‘Musk Move.’

Warren Buffett and Elon Musk
Warren Buffett (left) and Elon Musk (right).

  • Warren Buffett and Elon Musk are moving markets this year.
  • Berkshire Hathaway’s bets on Verizon and Chevron boosted both stocks this week.
  • Musk’s tweets have lifted GameStop, Dogecoin, Etsy, bitcoin, and other assets.
  • Visit Insider’s homepage for more stories.

Warren Buffett famously moves markets with his decisions, as many investors trust the Berkshire Hathaway CEO’s judgment and race to buy what he’s bought and sell what he’s sold.

Other investors anticipate that behavior and rush to take advantage by buying or selling before the Buffett faithful, making the process somewhat self-fulfilling.

Tesla CEO Elon Musk has showcased a similar ability in recent weeks, driving stocks and cryptocurrencies skyward with his tweets.

The “Buffett Bump” was on full display this week after Berkshire disclosed multibillion-dollar stakes in Verizon, Chevron, and Marsh & McLennan after markets closed on Tuesday. The telecoms titan’s stock price jumped 5% on Wednesday, while shares in the energy giant and the financial services group rose about 3%.

The rallies added about $19 billion in total to the three companies’ market capitalizations.

Similarly, there have been “Musk Moves” in numerous securities this year. The Tesla chief’s tweets about GameStop, Dogecoin, and Etsy helped to – at least temporarily – drive their prices higher.

Musk’s tweets about the encrypted-messaging app Signal and the techno song “Sandstorm” have been linked to run-ups in entirely unrelated securities.

Moreover, Tesla’s purchase of $1.5 billion of bitcoin this month has been a key catalyst in the digital coin’s latest rally. Musk’s endorsement was hailed as a milestone in mainstream acceptance of cryptocurrencies.

It’s clear that Buffett’s backing continues to translate into billion-dollar increases in companies’ market values. He  has some competition from Musk, whose stamp of approval has a similar, albeit less precise and sustained, effect on markets too. 

Read the original article on Business Insider