Billionaire Bull Teslas Plan for China Davos in the Desert

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This squad the daily podcast brought to you by the team behind squawk box control to CNBC's essential morning show every day get the best stories debate and analysis from the biggest names in business and politics today legendary investor Ron Baron believes strategy that goes beyond tomorrow is key to a positive outlook today the next fifty years there's going to be similar to the last fifty years that'd be twenty five times your money invest now tesla new Chairman Robyn Denholm took aligns job but she's still one of his biggest fan the way he runs the company is is phenomenal in Davos in the desert Saudi Arabia's anyone investment conference kicks off next week who's going WHO's not and why it matters commissions and happens companies. They don't have permanent enemies you know they don't have permanent friends they just have permanent interest I'm CNBC producer Cameron Kosta it's Friday October twenty fifth todd begins right now under by three two one two Andrew Good morning and welcome to spot right here on CNBC we love Nasdaq market site in Times Square meant Ross sorkin along with Joe Kernan becky quick with she is live in the barren investment conference with the legendary Ron Baron we're going to get to them in just Ron mine is a buy and hold investor who's long term strategy has made him a legend on Wall Street every year CNBC goes to his investors conference this year and many of years Kikoko's and so does Katie your usual podcast host they cut off this morning off camera we're at Lincoln Center in New York City today and this is where the baron investment conference is taking place it's an annual conference that we've been coming to since two thousand and eight so we've been longtime longtime participants in just coming along for the ride and seeing what Ron has to offer mazing thing is ron brings lots of big entertainment where it Lynn Lincoln Center so in the past he's brought guests like Barbra streisand or Bruce springsteen or McCartney which he said was his favorite but the big deal and the reason somebody shareholders who come here the Barron shareholders come is because he brings up his managers they give their take on the world and then they bring up the CEO's a lot of the the biggest companies that Burns invested in and and so it's really kind of a mix of entertainment and and and really of view of what's happening in the economy and what's happening in business so so Ron's whole perspective is by hold stocks for a long time this am businesses invest in people you know some of the people that we've met her over the years have been people like Elon Musk who's the head of Tesla and creator of Tesla we've met Kevin plank who was the founder and CEO of under armor he finds people who he thinks are at dynamic who have big ideas and then he watches the companies and watches the markets now he said buy and hold for a long time that doesn't mean buy and hold forever like Buffet Likes To do Warren Buffet likes to do under Armour Kevin Plank was a big investor in that company but there was a time if you eight years ago where he said Okay it's time to sell what's your big takeaway on Ron's message for investors right now particularly with the way the markets are you know if you look around it's a pretty turbulent time his take is that this is an incredible time to get into the markets he thinks people are far too pessimistic are host Barron Investment Conference Ron Barren Barren capitals chairman Ed. CEO Let's talk a little bit about your theme this year it's called what's next why what's next and what is next so what's next is that so we're looking for faster growth in the future then in the past and but what's next is the growth the economy goes for the stock market what do you mean economy and and what I think is that when you think about the turmoil that's taking place in the stock market now and everyone is afraid that's you know and people have higher amounts of cash and they've ever had before in Europe they have negative interest rates people so concerned is eighteen central banks can in Rio do there The interesting United States are have been going down the way I think about it though is that the stock market today is pretty much the same values nations that it was in one thousand nine hundred eighty nine and sixteen point six times earnings or sixteen point five times earnings then then was amidst turmoil you had the city's on fire the national guard the streets are trying to keep law and order yet the Vietnam War protests women's rights protesting so so everything was it's a mess but but really sticks and the assassination of President Kennedy swapping my office about I have a lot of younger people mouse and they said tell me about this assignations sixties and people said well John Kennedy said anyone else and they said I don't know it was Martin Luther King in one thousand nine six eight and Robert Kennedy Nineteen Sixty eight they tried to get George awesome so so there was turmoil and it was a concern that that the country was going to survive but the stock market then was thousands on Al Jones is now twenty six or twenty seven thousand twenty six times the economy then was eight hundred and fifty billion is now twenty one point three trillion twenty five times so all you had to do this believe that this country was going to survive and invest then and you would have made twenty five hundred money and so I think that what's going to happen in the next fifty years of course I'll be one hundred twenty six by then and you can reach me at Barron Funds Dot Com they will know where uh-huh and but but I'm thinking about the next the next fifty years it's going to be similar to the last fifty years that'd be twenty five times or money if you invest now and and and even better is that interest rates today or one and a half percent one point six percent for ten years they're normally four and a half percent for ten years you have platform investments now so it used to be when I was young and you wanted to make money you'd build a factory for a million dollars or hotel and then maybe eight hundred thousand one hundred fifty thousand after you take the risk of putting up a million and so but now you've you've come into capital late business you have technology I therefore other people giving you money writing off have platform built you could be a licensor people could be using your business in the cloud and then all of a sudden you start getting revenues and that revenue you just seventy eighty ninety percent margin that's worth more than a earnings per share company without having put up the capital people finding some of these two so you can do it exactly so it's capital low interest rates the technology technology is making businesses grow faster because and and also it's it's making your costs be lower and then knowledge knowledge is growing the fastest pace than it's ever grown and it used to be one hundred years ago that knowledge doubled every hundred years and then after World War Two it was twenty five years and now it's every eighteen months and with the Internet of things going knowledge is going to double according to IBM every eight hours or twelve hours knowledge humankind but when when you look at our growth that we've seen to this point a lot of people say our economy is just stuck in a slower growth economy we're never going to be able to grow faster pace we've seen it pick up a little bit over the last several you ears but why isn't reflected in the numbers why isn't the economic growth stronger because you're right information technology all of these different ways of increasing our productivity are it's not reflected in government numbers right now people are afraid well you're in one of these the economy doesn't go like this it goes like this and and so the result to that whenever goes down people say this is it this is the end I better get out and so all these people watch remote show in the morning and everyone talks about well the stock market invested

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