Billionaire investor Ron Baron: Growth will accelerate above 7% over the next 50 years

OIL, WTI CRUDE, BY THE BARREL, IT WILL COST YOU $60.29. >>> TESLA HAS BEEN ON A BIG RUN THE LAST FEW MONTHS. IT IS UP 115% SO FAR IN 2023. OUR NEXT GUEST IS ONE OF TESLA'S BIGGEST SHAREHOLDERS JOINING US IN AN EXCLUSIVE INTERVIEW IS RON BARON, THE CHAIRMAN AND CEO OF BARON CAPITAL. IT IS GOOD TO SEE YOU AND HAVE YOU IN STUDIO.>> GREAT TO SEE YOU. BEFORE I LEFT HOME, MY WIFE SAID TO ME THIS MORNING, I DON'T WANT ANYBODY HEARING YOUR RUDE STORIES. FOR ONE STORY. THE OTHER I WILL TELL YOU LATER. >> I THOUGHT WE WOULD END THE INTERVIEW RIGHT NOW. IF WE CANNOT DO -- WHAT WILL WE TALK ABOUT? >> I WANT TO THANK YOU. CONGRATULATIONS TO EVERYONE ON YOUR BIT COIN. AND TWO, I HAVE BEEN ON THIS PROGRAM FOR 17 YEARS. BECAUSE OF YOU PEOPLE RECOGNIZE ME EVERYWHERE. IT IS AMAZING AND I WANT TO SAY THANK YOU. I AM WALKING TO WORK THE OTHER DAY ON PARK AVENUE AND WOMAN COMES RUNNING AT ME. SHE GRABS NONSENSE AS, THANK YOU, THANK YOU. I LOVE MY SMILE. SHE SAID, YOU ARE THE COOL GUY ON CNBC ALL THE TIME >> YOU MUST GET THAT A LOT >> YOU WANT TO TALK BROADER MARKETS OR TESLA? >> I WANT TO MENTION ABOUT -- I WILL TALK ABOUT THAT IN A MINUTE. I KNOW THAT IS WHAT YOU WANT TO GET TO. YESTERDAY OR THE DAY BEFORE I WAS WATCHING THE SHOW YOU TALKED ABOUT PSG AND HOW THE UNITED STATES ARE PASSING LEGISLATION OR TRYING TO PASS LEGISLATION SAYING YOU SHOULD NOT CONSIDER THE FACTORS. I WILL POINT OUT THAT WE DO CONSIDER THOSE FACTORS AND WE CONSIDER HOW YOU TREAT EMPLOYEES AND IF YOU ARE NOT TREATING THEM WELL, HOW WILL YOU RETAIN THEM AND HIRE THE BEST AND KEEP THEM. AND HELP YOU TRAIN THEM. WE ARE INTERESTED IN THESE THINGS AND ALSO INTERESTED IN MAKING SURE THE COMPANIES IN WHICH WE ARE INVESTING, WE ARE CONSCIOUS OF THAT. TO ARGUE AGAINST THE IDEA THAT IT IS NOT IMPORTANT ABOUT HOW MUCH MONEY YOU ARE ABLE -- ONLY MAKING MONEY IS WHAT IS IMPORTANT, WE HAVE BEEN CONSCIOUS OF THIS AND BECAUSE OF THAT WE HAVE OUTPERFORMED. 98% OF STOCKS HAVE BEEN BETTER THAN THE MARKET. 45.5% ARE IN THE TOP 1%. NOT ONLY THE TOP 1%, BUT NUMBER ONE IN THE CATEGORIES. AND THE FIRM IS THE NUMBER ONE PERFORMING FIRM FOR MUTUAL FUNDS . WE HAVE BEEN ABLE TO PERFORM WELL >> WHEN YOU SAY, ESG , IT DEPENDS ON WHO IS USING IT AND HOW THEY ARE MEASURING IT. YOU WILL NOT SEE YOU ARE AGAINST THE ENVIRONMENT, SOCIAL OR GOVERNANCE ISSUES. PEOPLE WILL MEASURE THINGS AND CRAZY WAYS. THE PUSHBACK COMES FROM THE BUREAUCRACY AND THE GREENWASHING THAT IS USED TO DRESS UP OR DRESS DOWN OTHER PLACES AND I THINK PART OF THE PROBLEM COMES FROM BIG INSTITUTIONAL SHAREHOLDERS WHO HAVE SAID YOU ARE GOING TO DO THINGS THIS WAY. IT IS NOT THEIR MONEY THEY ARE TALKING ABOUT. >> WE ARE NOT LIKE THAT. >> I THINK THE ARGUMENT GETS SO CONVOLUTED BECAUSE IT DEPENDS ON WHAT YOU'RE TALKING ABOUT WHEN YOU SAY, ESG. >> I AGREE. ANYWAY. WE ARE CONSCIOUS OF HOW COMPANIES TREAT PEOPLE AND SHAREHOLDERS . WE ARE AWARE OF THESE THINGS. OUR BUSINESS, WE HAVE NEVER HAD A LAYOFF IN THE HISTORY OF OUR BUSINESS. THEREFORE PEOPLE FEEL COMFORTABLE WORKING FOR US AND THEY TRUST US. AND WE KEEP GOING. WE DO THE BEST WE CAN FOR CLIENTS IN THE BEST WE CAN FOR OUR CUSTOMERS. OUR EMPLOYEES AND SHAREHOLDERS. ONE OF THE THINGS I THINK IS REALLY IMPORTANT IS THAT WE DON'T WORRY ABOUT THE STOCK MARKET. WE DON'T WORRY ABOUT INTEREST RATES IN THE ECONOMY AND WARS. IN MY WHOLE HISTORY THERE HAS NEVER BEEN IT -- ONE YEAR IN MY WHOLE CAREER. THE STOCK MARKET IN THIS TIME, WITH ALL OF THAT GOING ON THE STOCK MARKET IS UP 34 TIMES SINCE 1970. THE ECONOMY IN THAT PERIOD OF TIME IS ALSO UP 33 TIMES. DESPITE ALL THIS, WE ARE UP. OVER THE NEXT 50 YEARS COMPARED TO THE LAST 50 YEARS I THINK YOU HAVE FASTER GROWTH. YOU HAVE 35 TIMES THE MONEY OVER THE NEXT 50 YEARS WHICH MEANS DOW JONES WHICH IS 34,000 WILL BE 900,000. I'M THINKING ABOUT 900,000. >> WHY DO YOU THINK FASTER GROWTH OVER THE NEXT 50 YEARS? PEOPLE SAY OVER THE NEXT 10 YEARS YOU COULD SEE SLOWER GROWTH AND 7%. >> INFLATION IS 4% OR 5% OF THE 7% GROWTH. YEAR-OVER-YEAR GROWTH IS 2%. ALL THE GROWTH IS TAKING PLACE IN THE PAST 20, 30, 40 YEARS. THAT IS ACCELERATING BY TECHNOLOGY. >> YOU EXPECT INFLATION TO BE HIGHER? >> I EXPECT INFLATION TO BE AS IT HAS ALWAYS BEEN. 4% OR 5% A YEAR. I THINK EVERYTHING WILL BE TWICE AS EXPENSIVE IN 14 OR 15 YEARS THAN IT IS TODAY. IT MIGHT TOUCHDOWN A 2% OR 3%. EVEN IN 1986 OR 87 IT WAS 3%

Channel: CNBC Television

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Id: hVsyaTKSSJ0

Length: 6min 34sec (394 seconds)

Published: Fri Jun 23 2023