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Billionaire Ron Baron: We're going to make '20 times our money' in Tesla

CNBC logo CNBC 5/14/2018 Berkeley Lovelace Jr.

Buy and hold billionaire Ron Baron on Monday defended his investment in TeslaTSLA, saying he doesn't care that he hasn't made very much money from the electric-car maker yet.

"I think we're going to make 20 times our money because the opportunity is so enormous," the 75-year-old founder of Baron Capital told CNBC's "Squawk Box." "People say, 'Gee, they're spending a lot of cash.' Of course, they're spending a lot of cash. They're building factories."

Tesla, with a market value of nearly $52 billion, has seen its shares fall more than 6 percent over the past three months. Investors have been concerned in part over the company's ability to ramp up production of the Model 3.

Baron, who has been investing in Tesla since 2014 and is the firm's eighth-largest holding, said many investors buy and sell stocks on the basis on news. But Baron said his firm has made billions of dollars by doing extensive research, buying shares of what he feels are undervalued companies.

If an investor waits until something is successful then, "it's too late. Then you're going to pay a high price," said Baron, whose firm has more than $27 billion assets under management. "What we try to do is buy when that development is taking place."


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