He is most famous for being an early Bull on Tesla stock and publicly placing an astronomical price target of $4,000 per share back in early 2020. This was before Tesla stock rose by over 800% that same year!
In a 2021 interview with Bloomberg, Baron stated that He thinks Tesla CEO Elon Musk will become a “Trillion Dollar Man”.
Ron Baron Growth Investing Strategy:
Ron Baron invests into growth stocks with high revenue growth and a long term vision. He tends to hold these stocks for a very long term if the fundamentals don’t change.
Baron Looks for unique companies which are “changing or disrupting” an industry. For Example, Tesla is disrupting the auto industry and SpaceX is disrupting the rocket Industry with it’s reusable rockets.
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron-Strategy
Investing with great founders:
Ron Baron likes to bet on great management & founders, in a 2021 interview with Bloomberg Baron stated “investing into Tesla was a bet on Elon Musk”.
He goes on to talk about how Elon Musk lives and his commitment to tesla “Elon lives in this small cottage, 2 bedrooms…on this desert property” .
This is a reference to Elon Musk selling the majority of his large homes to move into a tiny prefab Cabin worth just $50k. You can see Tweet below.
My primary home is literally a ~$50k house in Boca Chica / Starbase that I rent from SpaceX. It’s kinda awesome though.
Only house I own is the events house in the Bay Area. If I sold it, the house would see less use, unless bought by a big family, which might happen some day.
— Elon Musk (@elonmusk) June 9, 2021
Elon Musk Prefab house sells large houses to move into $50k prefab cabin house which he rents from SpaceX Image credit: boxabl , Edit: www.motivation2invest.com
Baron goes onto to say Elon works “all but 5 hours per day” and “spends his time in factories”.
Baron Investment Strategy: Growth stocks, Qualitative, Long term.
From the Baron Fund Investment Strategy Website:
- Long-term perspective allows us to think differently
- Independent and exhaustive research is essential to understanding a business
- People are the key drivers of a successful business
- Successful growth businesses have open-ended opportunities and competitive advantages
- Purchase price matters
- Research and risk management are continuous processes
How much is Ron Baron worth?
Ron Baron has a Net worth of $4.1 Billion as of 2021.
However, Baron hasn’t always been wealthy. Coming from New Jersey, he made money as a child shovelling snow, selling ice cream and even working as a life guard.
Through these ventures he saved $1000, which he invested & turned it into $4,000. This earned him the nickname “Count”.
What does Baron Capital do?
Ron Baron owns Baron Capital management an asset management firm with a strong focus on investing into growth stocks. The company manages a series of 18 mutual funds from small cap growth to large cap and real estate.
Can I invest in Baron Funds?
Yes , The minimum initial investment for Retail Class Shares is $2,000 per fund or $500 per fund if you use our Automatic Investment Plan. Minimal investment for Institutional Class Shares is $1,000,000 per fund.
What is Ron Baron invested in?
The Baron Growth fund returned 122% in 2020 and has almost a third of it’s assets in Tesla stock. The company also is one of the few investment firms who has been given access to invest into SpaceX, while still private.
According to Ron Baron “SpaceX will earn us 50 times our money in 10 years”. A Very bullish price prediction indeed.
I covered How to invest into SpaceX pre IPO, on my Youtube channel, there is also rumours from Elon Musk of a possible Starlink IPO.
Did Ron Baron sell Tesla?
Despite being a major early bull on Tesla stock, Ron Baron did sell some of his Tesla stock after the major gains in 2020.
Baron Capital held over 6.1 million Tesla shares as of Feb. 28 2021. These shares were purchased at an average cost of just $42.34 per share.
Baron Capital sold 1.8 million shares of Tesla from August 2020 through February 2021.
Baron told CNBC “1.7 million of those shares were sold in the last six months. About 1.2 million of those shares were sold at $400 to $900 a share, according to the company.”
Ron Baron states he is still bullish on Tesla stock and predicts a price of at least $2000 per share. In a recent interview with Bloomberg October 2021, Baron Stated “I think Tesla can at least double or triple from this point”.
I covered the sale of Tesla stock on my channel Motivation 2 invest and stated this was a good time to trim the position.
Ron Baron Investing Quotes x 9
1. Signal not the noise
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
When you invest in the stock market, you will find yourself wanting to buy and sell lots based on emotion & headlines.
This is a dangerous mistake the media thrives from getting many “experts” on to tell you what to do in that moment, this creates alot of noise and can distract you from a long term investing strategy.
2. Invest Long Term
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
3. Invest don’t trade
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
But choosing to not trade daily, you are saving on transaction fee’s (many hidden in free trading apps), and you are saving on Tax implications.
4. The longer you hold stocks, the more you know
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
5. Sell if the fundamentals change
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
6. Pay for Growth
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
“The Biggest mistake investors make, is to avoid paying a small premium for a growing business”. Many people identified great growth stocks in the past from Amazon to Apple, Facebook, Tesla etc. But most people didn’t invest because they were “overvalued” or “losing money”.
Investors which saw the long term company vision were rewarded handsomely such as Nick Sleep who at one point had close to 40% of the Nomad Fund in Amazon stock.
As a growth stock investor, it can be ok to pay a small premium for a growing stock…but not any price!
Even the Legendary Investor Warren Buffett states:
“it’s better to buy a wonderful company at a fair price, than a fair company at a wonderful price” This quote symbolised his transition towards a growth stock investor, helped by his good friend Charlie Munger.
Do you know how to Value stocks?
Personally, I feel the phrase “overvalued” get’s thrown around too much. As most people who say it haven’t actually valued the company, even “experts” on TV! If you want to learn how check out our investing strategy course & downloadable valuation models for over 55 stocks. Good Luck.
7. Research & Buy when Undervalued
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
“Extensive research, buying undervalued companies & keeping them for an average of 14 years” This is a nice short summary of Ron Barons investment strategy. It’s best to research stocks upfront then when opportunities come you are ready to buy.
8. Small Cap = Growth
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
Multiple studies show small cap stocks tend to outperform there larger counterparts. Small caps offer higher growth potential but also experience higher volatility, in addition to increased bankruptcy risk.
There is also less liquidity which means it can be difficult to buy and sell fast. Ron Baron states this isn’t an issue for his funds as they aim to hold long term.
9. Nobody can predict the stock market
Ron Baron Growth Stock Investing Strategy & Quotes
Credit: www.Motivation2invest.com/Ron-Baron
Many extrinsic factors will affect your stocks from interest rates to the economy. Ron Baron & even Legendary investor Peter Lynch believes nobody can consistently predict these macro economic factors.
Thus it’s best to invest into businesses which will perform well under any conditions. For example, if investing during an inflationary period companies with “pricing power” the ability to raise prices do well.
Want to learn how to invest?
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You also get access to our entire Stock research platform and our thriving VIP Membership group. Where you will be supported by like minded investors at all levels from complete beginner to advanced.
Membership is only open for a limited time only every month as we try to keep the quality high. As a special treat if you use the promo code “m2iinstagram10” you get $10 discount!
Inflation Trade | Former Wall Street Trader Interview:
Ron Baron Investing Quotes Gallery x 10
