- 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.
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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.
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.