Tesla and SpaceX CEO Elon Musk has a habit of making headlines for everything from rockets to robotaxis, but as the richest man in the world, there’s one question people constantly throw his way: what’s the smartest way to invest money without losing sleep every time the market gets shaky?
Musk’s answer is refreshingly uncomplicated in a financial world that often sounds like it requires a decoder ring and three monitors full of stock charts.
“Since I’ve been asked a lot: Buy stock in several companies that make products & services that you believe in,” Musk wrote in a post on X in 2022. “Only sell if you think their products & services are trending worse. Don’t panic when the market does,” he said. “This will serve you well in the long-term.”
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The Market Loves Chaos
Part of the reason Musk’s advice still feels relevant today is because markets have become emotional roller coasters dressed up in business attire.
One day investors are celebrating cooling inflation data. The next, they’re worried the economy is slowing too fast. A comment from a Federal Reserve official sends stocks bouncing around, analysts rush onto television with urgent predictions and suddenly everyone starts checking retirement accounts like they’re waiting for medical test results.
Musk’s philosophy pushes against that panic-first mindset.
Instead of reacting to every headline or rough trading session, his approach centers on the actual quality of the business. Are the company’s products improving? Do customers still believe in what it sells? Is the long-term outlook intact?
If the answer is yes, Musk’s argument is that short-term volatility shouldn’t automatically send investors running for the exits.
That idea may sound simple, but in practice, patience can feel surprisingly rare on Wall Street. Investors often panic during downturns, sell quality companies at the worst possible moment and later watch those same stocks recover without them.
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Musk’s Fortune Follows His Philosophy
Musk’s comments also carry extra weight because he personally invests the way he describes.
“My ‘net worth’ is almost entirely due to my ownership stakes in Tesla and SpaceX,” Musk wrote in a post on X in February. “I have 0.1% that is cash.”
That’s a striking approach for someone whose wealth moves by billions of dollars depending on market swings.
Rather than spreading most of his fortune into safer or more traditional holdings, Musk remains heavily tied to the companies he believes will shape the future. His wealth rises and falls alongside Tesla’s electric vehicle business and SpaceX’s ambitions in space technology.
It’s a founder-style strategy built around conviction, not comfort.
Buffett Takes A Different Route
Berkshire Hathaway Chair Warren Buffett shares some common ground with Musk, particularly the idea that investors should understand the businesses they own. Buffett has long warned people against investing in companies they cannot reasonably evaluate.
Still, Buffett generally favors a more conservative path for everyday investors. Rather than betting heavily on a small number of companies, he has repeatedly promoted low-cost S&P 500 index funds as a practical long-term strategy.
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“I don’t think most people are in a position to pick single stocks,” Buffett said at the Berkshire Hathaway annual shareholder meeting …
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