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To understand the potential for Buffett to buy Tesla, it is crucial to examine Elon Musk's recent comments and the broader economic landscape. Musk has discussed the cyclical nature of the economy, noting that we are overdue for a recession after 13 years of expansion since 2009. Market panic and economic downturns historically create fertile ground for long-term investors like Buffett to step in and acquire high-quality stocks at bargain prices.
Historical Market Cycles Present Buying Opportunities
Musk highlighted the extreme volatility and catastrophic drops experienced by otherwise strong companies during past panic phases. For example: