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Ron Baron, Baron Capital, has a growing portfolio called the Baron Opportunity Fund, and Tesla (TSLA) is among its top 10 holdings. The billionaire investor believes Elon Musk's Tesla and SpaceX will continue to grow.
“I told you a long time ago that I thought we would make 20 times our money in Tesla,” Baron went on to explain. “So far, we’ve made four times. I now think we’re gonna make double or triple again over the next five years and double or triple again over the next five years.”
He believes that “there’s 10 times more to go” with Tesla. He also said that SpaceX, a privately held company, will grow 20 times over the next 10 years. He had previously predicted similar growth for Tesla.
Baron’s investment firm holds 1.6 million shares of Tesla at an average cost of $219.02 each, according to Baron Capital data. He said he’s looking to add to his Tesla stake, which is currently valued at $1.5 billion as of Monday’s closing level. The Baron said he would like to get more money to buy additional shares of Tesla.
As a long-term investor, Baron is not worried about the news because his company conducts its own research. They have 36 investment professionals and 170 employees.
Baron says that stock prices generally double approximately every 10 years. His company, he said, invests in business, not in stocks. He says that he doesn't like commodities and materials, he just wants to invest in growing companies - companies that can grow much faster than the economy, companies where they like people, companies, who have a competitive advantage that prevents others from doing the same. At such companies, Baron Capital hang on for the long term.
Investor admires the fact that Elon Musk built all his projects without ads, while his rivals spend millions of dollars on it.
In February, Baron also shared that he doesn't intend to sell the company shares now. He said that a couple of colleagues came up to him with a proposal to sell some TSLA now, but Baron answered them: "I said, do whatever you want, but your clients will look back, and you're never going to be able to buy the stock again. This is the reason people pay us. We're going to make 10 times our money from here."