YouSaid · the spoken record

Ron Baron

lines on the record: 87
first: 2021-01-29
most recent: 2021-01-29
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“And then what he did afterwards is that I was in the board of Horace Man, which is day school my kids went to, and he would give us regularly when they would have these auctions, I would call him his agents, who turns out now the agent is my friend. But I would call the agent and he would give us no Record albums that would say he was autographing and would say ROCK rocket and then exclamation points Bruce Springsteen and I went to auction for $100, $2, whatever it was. I would get these gifts that he would put out to raise money for Horace Mann. That's some very great.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Dad living with us, and we have a nanny, and we're bursting at the seams in this house. The guy knocks on our door and says, I'd like to buy your house. And I said, well, it's not for sale. And he says, well, how about for $400,000? I said, well, just a second. And I closed the door and I said, Judy, somebody wants to buy her house for $400,000. So she says, sell it. So I opened the door and said, you just bought a house. And it turns out that this was a lawyer representing Springsteen. So he bought that house and he lived in it for, he had a habit by he'd just gotten married and he needed to have it by, I think it was like December of 15th or 12th. He wanted to have it for a celebration in December. And so we sold it to him at the end of the summer. And no problem.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“When I had my 1980, we have our first child, Judy and I, and we didn't have a weekend house and we bought this old house built in 1860 on two and a half acres on Navasink River Road, 920 Navasink River Road, and overlooking Rumpson, overlooking the Navasink River, and to the left you saw the ocean, maybe 60 feet high. And it's now 1980, and we pay $250,000 for it. In the middle of these 15 acre estates, Bonjovi was on the street, and Roger Penske was on the streets. They had big houses. We had this tiny little house. And with a dirt basement. And so we have it for two and a half years, three years, and now we have two children.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“All of a sudden went, we took away all the victories and went 0 and 9. And so I said, oh my God, this was everything for this town. And so I said maybe there's something I can do. And there was this trophy case in the front of the school where I bought the trophies, the scores for every game that they had. It said, undefeated on the field. And then every football player's name I had inscribed on there. And then I bought them rings that said undefeated on the field. And Springsteen read about it. And then he gave everyone, including me, a baseball jacket, football jackets. It said the same thing, undefeated on the field. I got a Springsteen jacket.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I read the article in the New York Times that described that. And I felt badly. I mean, when I went to high school, it was a minority high school. I mean, it was 50% black and 50% white. And maybe it was about that. Maybe it was two-thirds white and one-third black, or maybe it was 50-50. And there were 2,000 kids there. And now there's 1,000 kids when this happens. And it was 18 or 20 percent unemployment in Aspury Park. The boardwalk was a mess. And I felt badly and say, here are these kids. There were two kids who were ineligible and they played on the team. And because of that, they first, I think they went A0 or 9-0.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“In sales, the stock price didn't change. It went up and down, up and down, up and down. Then it went up 10 times. The stock price caught up to the business. And now the business is going to grow faster than the stock price over the next 10 years, I think.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Pretty cool. And I think that there's three more times to come from that. And then over 10 years. So the advantage that we have is that there's hardly, I don't know any people. I'm sure there must be out there. But I don't know people who are investing for other people who said I'm going to make a 10-year investment or a 20-year investment in a company. And as long as the fundamentals, as I expect them to be, stay with it, and I'm not going to worry about the price in the meantime. So that's what I do. From the time we invested in it in 2014 to last year, the business grew from $2,008 to $25 billion.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“It wouldn't be pleasant, but I can afford to lose it, but I can't afford not to make a billion. And if I do make it, I'll give some of the profit to people who work at Barren Capital. In addition, at Barren Capital would just be stronger, and my goal is to make it last for 100 years, so I want it to have a stronger balance sheet, even stronger than it does now. So I gave me permission. I said, I'm committing that I will be the last person to sell, so I'm the last person to buy. No one else is going to buy at various brand capital, and I'll be the last one to sell. I'm not going to sell anything until all of the shares are sold by all of my clients. And the director of Baron Fund said that sounds reasonable, and it's fine to go do it. And so I did that, and it turned into way after five for one split, a million one shares. So I told, so when the $500 million, two shares that we've sold so far for”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Did and then when Tesla comes along, I said, geez, this is going to be this monster company. And what I want to do is I went to the board and I said in 2014 to 2016, I bought all the stock I could buy for a couple of funds that I managed, and most of the mutual funds at Barring Capital, which are real estate or health care or fintech or emerging markets or small cap, they can't own Tesla. And a couple of guys that could own it, I tried to persuade them and I wasn't successful. So I said, I'm not just taking anyone's opportunity if I invest in this. I'm not going to do it personally, but I'd like to take $50 million on behalf of Barron Capital and invest it in Tesla. And I think I can make a billion dollars on it, and I can afford to lose $50 million.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I've sold it, but people just say, gee, how can you, don't you ever sell? What's the matter with you? So what I did in Tesla is that I said that I'm not buying stocks. I only invest in our mutual funds. And that was the commitment I made. And since 1992, with a couple of little tiny exceptions and the exceptions were when we wanted to have a large cap growth fund, I said, okay, I'll invest $10 million just without knowing anything about Berkshire Hathaway and Goldman Sachs and Qualcomm. We're not really doing research and see how they do. And I'll compare that. That's my benchmark against our large cap growth. So we did that. And a couple little things like that is what I did.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“As a business owner, not just as an investor in a company, to show people that actually we do take profits on occasion. And it's something not because there's something wrong with the business or because I'm afraid about the volatility in the stock, but rather because I want to show people that we're responsible. So out of the 8 million shares that we have, 8 million one shares, we sold 500,000 shares for our clients at 450 and 500,000 shares. Remember, of course, it's 41. 500,000 shares at 650 and 250,000 shares at 850. It's painful every time I...”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Then a farmer's network to allow farmers to get better seed at lower prices, we're investor in that. So we have a bunch of small investments, but we have in Baron Grossplund, for example, about a bunch of investments that we've vested $10, $20 million that are worth $200 million, $300 million. I had sold a little bit of Tesla, and I wanted people to see what I'm doing, so they don't think that I've died. And the only reason we still don't Tesla is because I'm dead. So I put a note up on our website that said that what happened is that it became a very large percentage of a few funds that we managed, Baron Partner's Fund, Baron Focus Growth Fund, one offshore fund that we have. And so as a result of that, I decided it would be a prudent.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“We own Rivian, which is another electric car company, a small position in that, and that's owned 20% by Amazon. And we have a small tradition in that. We're just investing right now in cruise. That's another private company that's going to do a car service. The big problem with electric vehicles is where the battery's coming from. And this company, Goldman Sachs, sponsored and Volkswagen is the big customer for making these batteries in Europe and using hydropower in Norway.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Internet. If you happen to live in East Hampton or Vale or even Palm Beach, there's not good reception for internet. And so the big opportunity and the relatively short term is that they can get very low cost of launch. So Elon Musk owns 52% of the company. Google owns 7%. We own a little bit less than one. And I think that this internet to the broadband from satellite to your home is going to be an unbelievable business. Unbelievable because there's so many people that need it. So this is like a utility. This is like water and this is like electricity. You've got to have broadband. If you want to cut down on the inequality that's present in the world, you've got to have people educated. The way you're getting educated is with...”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Standing up doesn't work, he did it. And so if someone else is going to do it, China, when they were successful at this, at landing these rockets, China had an editorial in the Wall Street Journal. And they said, congratulations, Elon Musk, but boy, our brilliant Chinese engineers, you're really missing out. You're getting beaten not by a country. You're getting beaten by a guy. What's the matter with you? You've got to catch up. And China editorial in the Wall Street Journal was, we think we are, I don't remember if it's five years behind or ten years behind, but way behind Elon Musk, not behind the United States, behind Elon Musk. So the idea here is that there's 7 billion people on Earth or 7.5 billion, and half of them don't have”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, full circle. And so with SpaceX, the competitive advantage that they have the competitive advantage that Tesla has is batteries stuff, the competitive advantage that SpaceX has is that they use the rockets over and over again. So the fuel to get into outer space is maybe an orbit maybe 500,000 dollars, a million dollars, and the rockets are $100,000, $200 million. They're throwing away $100, $200 million. instead of just spending the fuel over and over again. So now Tesla, the invention that they have is that they use the rockets over and over and over again. And so everyone said, man, you can't do that. Landing a rocket on a platform in the ocean that's moving, they can use it again and again. That's insane. Nobody could do that. That's like dropping a pencil from your hand and landing on an eraser.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And one of the big reasons for that is that since the 1960s, when we started President Kennedy's, they were going through the moon. And the rockets that he used that were disposable, $100 million rockets, $200 million rockets, they used one time, and then it burns up. I was, when I was working in the patent office, by the way, just as a little aside here, when one of the things I did was I gave the patents on the coatings that were used on the capsules that returned to Earth. So all those capsules to make them not burn up, I was the one who gave the patents on that stuff. It's just amazing.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“We're an investor. We own a little bit less than 1%. It's a private company, and the value on it is forty three billion maybe. And that was where we started with Tesla. I think that SpaceX is on the way to $2 trillion also. So I think that in Tesla, we're going to make a triple in 10 years. I think that in SpaceX, we're going to make 30 to 50 times in 10 years.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“One more thing. And Tesla, the battery business, which I think the car business could be a $600 or $700 billion business in revenues a year and making $200 million a year, $200 billion a year in 10 years. That's how you get to this $2 trillion value. But that's not including the batteries. He thinks that the battery can be also a business as big as the car business. So think about that. So here he thinks he's going to go from $500,000 a year to 20 million cars a year. I'm not talking about it for the batteries. As far as SpaceX, what that is, is that that's a business that”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Pretty wild. You win when he goes into China and they spend $2 million, $2 billion on the first hotel in Macau, and they gave him, they were so happy that he came, they gave him land that he sold for a billion dollars. He has a billion dollars net, and he started making $100 million a month. This is Tesla. They make a billion dollar investments and they make $2.5 billion a year. They're going to do the same thing in Germany, same thing in Texas.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“When they built it in the first one in Fremont, that was about $17,000 of capital spending a car. Now in China, about $4,000 a car. And the factory in China is probably $250,000. People thought it was going to be 150,000 core factory, and that was the opportunity people perceived. But we thought that they could do millions, of course, a year in China. And that one factory they built so far is a 250,000 car factory a year, which is now at the rate it's producing. And that's making somewhere around $2.5 billion a year. So they invested a billion. That's making $2.5 billion. When you invest in a McDonald's a long time ago, you could invest a million dollars as a franchisee. And if you worked crazy hours and you put on your apron and got all dirty, maybe you can make a quarter of a million dollars a year for a million dollar investment. These guys have a billion dollar investment to making two and a half billion.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, we bought stock and Tesla. We spent $385 million between 2014 and 2016 to buy 8 million shares, 8 million one shares. And the average price is $40 a share, $42 a share. It's now $860 and $850. And so it's now $850 billion market cap. It was $425 billion when we started. I think that in, and I've been saying this for a while, when we bought it, I thought that we would make 20 times our money. We've made 20 times our money. And so far. And I think that it's going to be a $2 trillion company over the next 10 years, eight or ten years. That's $2,000 a share. Get lucky, yeah. I can get lucky and uh.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Contract doesn't mean anything. If you have to have a contract to enforce an agreement, you're doing business with the wrong person because any good lawyer can break any single contract you have. So you have to look, you only have the contract so you can keep track of what the deal was, not so you can expect to enforce it.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“twelve million dollars when it went public and it came public at twenty million dollars when it was first trade IPO twenty million dollars. That's the value of the whole company. We became in the nineteen seventies I was recommending the stock to my institutional clients in the 1980s. We became the largest institutional shareholder of Manner Care and it was sold ultimately for Carlisle Group for $4.5 billion, $4.3, $4.4, $4.5, something like that. But before it was sold, Choice Hotel went out. So we got Choice Hotels is now at $100 stock, and our cost is maybe originally $3. And Stuart Benham, one of those people, anything he said, whether it's good or bad, Jay Pritzker was one of those people. Anything they said, Prisker used to say to me is, Ron, I would talk to him about contracts.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“$400. They have no idea how, but I got the $2,000 to open up an account. I think the firm was called Reynolds Company and invested in Manerre. And Manerre was ultimately went up a thousand times from a thousand times. The company had a book value of...”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“In anything this guy told me that he's ever not performed. And Stuart Paynum from Choice Hotels, there isn't anything I know Stuart Paynam a thousand times when I was in the patent office in Washington I borrowed, somehow I had to get $2,000 because a manner of care was going public in 1969. That was a company his father had started and Manner Care was a nursing home company and I had read about 1965. They had the nursing homes, Medicare that I kind of figured out so much. And Washington Post wrote these stories about it. I said, I got to invest in that company. And so I invested. I borrowed $2,000 to get a margin account and $1,000 in the patent office credit union, $300 from household finance, $300 from beneficial finance. Somehow I came up with another.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“In Pennsylvania and in Harrisburg and went to visit him sometime after that, he was going public for the first time. I think the market cap on his company was 25 or $30 million. He ultimately sold the company for $7 billion. So you find these people that you can trust and you think are really capable. Do I really, what I trust this person to manage money for my family? Is that something I would feel comfortable choosing them to be someone who would be in charge of the assets that my family has if I wasn't here? And so it's the same kind of idea. So what we're doing is like with Peter Carlino.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Decks over again with wood that's composite and it's better than the traditional wood lasts longer and looks more attractive. So it's not just investing in reeds or it can be investing in a gaming company like a pen gaming which has sold the real estate that it owns but operates the properties now you have a play and pen and I've been investing with Peter Carlino in Penn Gaming since Free Mile Island right after there was a I don't remember what year it was but it was the 1970s I think somewhere where there was a nuclear explosion three mile island”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we have a mutual fund that's probably 10 years old. I think it must be, it's certainly in the top 1% of real estate mutual funds. Instead of just investing in REITs, we invest in companies that are C Corps. And it can be a hotel business like a Hyatt, for example, or it can be a service business like CoStar, which enables people to walk around and buy apartments, rent apartments when you walk by the building, and it'll show you instead of looking at the newspaper for an apartment that might be for sale, you can actually walk by one and you can look at it on your iPad, and you can see what that apartment, whether it's available and how much the rent is, and go in and rent it. Or it could be a trekx where it's going out there in the building.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, when I bought it, this must be in 1970, then what happened is that the list price was $2,500. And in order, but there was a waiting list, it mispriced it. There's a waiting list on those cars. And you had to pay the deal or cash a bribe. You had to give them $300 or $400 or $500. So basically it cost me $3,000 for a $2,500 this price car so I can get it immediately, but an orange car. And then two or three or four years later, the price had gone up and I sold the car. I bought it for $3,000 when it was listed for $2,500. And after I owned it for $3 or 4 years, I sold it for $50,000. $3,200. They sold her for more than I paid for it, and I paid overlist when I bought it originally. So it doesn't surprise me, I guess, that $80,000? Yes.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“My salary of $7,729 was a patent examiner, those are now $60,000, $70,000. So my big picture is that the value of your money falls in half every 17 years. So if you have $100,000 today, in 17 years, you have $50,000 of buying power, in 17 more years of $25,000, 17 more years will be 12. So basically, I think that the stock market is the hedge against the devaluation of your currency. So the stock market basically doubles every 10 or 12 years. So historically, it's about 10% a year, including dividends. So it's two or three, and that's because it keeps up with the economy, two or three percent reals, 3 or 4% inflation. People say there's no inflation. You go try to hire someone for the same price that they paid last year, and you'll find out how much inflation is. Ron, let me.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“When I bought a two forty Z for when I came to New York for two thousand dollars or two thousand five hundred dollars. And now they're, I don't know, twenty or thirty thousand dollars for these cars. What is that?”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And he owned Rides on the boardwalk and a real estate guy. And I said, boy, I want to be successful like that. But again, one hundred thousand dollars. That was a hole in money in the world and they had a $50,000 house. And so I say How do you have that? And so the concept of inflation, the concept of what things cost when I was, when I graduated college in 1965, my last year in college was everything was $3,500. When my first year was $2,200, my kids was 50 or $60,000. When my grandchildren are going to the school right now, they're six and eight years old. And I think their school must be $50,000 a year, $60,000 a year. They even got to school anymore. Virtual. So whether it's a car.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I said, What's this house worth? He says, $300,000. I said, wow, my parents here made a bad sale. And then I go to the other house on Deal Parkway in West Allen Earth. The same thing. That was the one they built for $20, and they sold ultimately for $100 when my dad retired. That's also worth $300, $350, $400,000. And so I think about it in terms of inflation. I was young and I thought $100,000 for the guy who lived on the corner and drove a Cadillac and we had an old Ford, and he had a house on the lake, and we had a house in the middle of the block and a quarter acre or something like that. I said, and”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And had a little brick front and one had a carport, they were all the same. In my house with the second from the corner, it was the nicest house in the block. I was so proud. They had a little fence around the front yard, maybe a quarter acre house, and they had put a dormer on the roof, so therefore some extra rooms. I'm standing there looking at this house taking pictures of it. And a big giant guy comes to the door. I don't want him to shoot me or something thinking, you know, who is this guy? I go up to him. And I say, you know, I'm Ron Barron. And I was the one who lived in this house just when it was built, a brand new house. And he said, I know your name, actually. And I said, wow. And it turned me, turned out that this guy is the construction guy, and his wife is a nurse. And he said he works at night. And he says, come on in. I couldn't come in because they had dogs. And I were afraid of dogs.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's so small that they have to have the refrigerator doesn't fit in the kitchen. It's outside on the porch. And so we live there until 1948. And in 48, my parents buy their first house for $5,000 in Wanamasa, also outside of Asbury Park. $5,000. Then in 1955, a seller for $10,000 to build a $20,000 house in West Allenhurst, also outside of Aspury Park. So to those houses, for example, I went back three or four or five years ago to see those houses 1122 Gresmuir Avenue and 542 Deal Parkway. And I go look at those houses and the house in Wanamasa, that's the one they sold for $10,000. It was every single house on the street was the same. They're coming back after World War II. They're all the same. They were like, one was yellow and one was brown.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, that's it. That's the whole idea. And if they have competitive advantage, so the big picture, the big picture I have is that my parents, though when we was five years old, and though I'm born in 1943 and we live for, that was during the war, and we're living in my parents and I, of course, I didn't know what I was doing. I'm a year old. We're living in Redbank, New Jersey, in three rooms owned by Rassis, who is a Helen Rassis, her husband's fighting in the war, and my dad's working for the Army. And we're living in these three rooms in 1944. We go live in Bradley Beach, which is just south of Asbury Park, and we live in a garage apartment, a detached garage apartment where”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then he has this whole network that's a feeder for the ski pass tickets. But the best mountain and he's got the best distribution system, and it's a great brand. And it's a spectacular adventure.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And he did. And then and all the people got their stuff. And then what happened is that the new person comes in, Rob Katz. I got so lucky with him. And all the ideas that I had about building and selling, building, he took off and he did. And in addition to that, he took a ski pass, and now he sells more than half of the tickets in advance before the season even starts before you know if it's going to snow. And as a result of that, we have half the ski passes sold and imported a network amount that you can sell, for example, in the northeast. Now you can sell people go skiing and bale from the northeast. They couldn't get there before. Now they can buy the tickets there. And so he has all this money in the till. And then what happens is that instead of charging $100 that I wanted to charge, he now charges $200 to ski on the mountain.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Didn't own it, but we make all the money on the mountain instead of $45 a day, you could earn $100 a day. And so he thought that was too risky, but he asked me, make a presentation to the board. I said, I'm not an active investor. I'm not trying to make you do things, but this is the way you should. Ron too much risk. I just want to fix it up and sell it.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“All the stock you can buy at this price, but if you want to sell your stock, I want to buy your stock. And so all those guys who I knew from Leon Black from Apollo were selling the stock, I bought it all. And so we bought 10 or 12% of the company around $30 a share. It's now $270 or $280, something like that. But the big idea was that it was the best place you could ski and there had been nothing done in the town to re-gentrify it. And that was a town built in the 1980s, about 1980, and it would really decrepit and the places would be junky and you would stay there and you'd pay $500 or $1,000 a night. And then you go skiing on a mountain for $45. And I said, if you made this town better, buy, sell, build, and then sell. Build and sell, build and sell, then what would happen is that the town would be so great and everyone would come there and we would be happy to spend anything you charge to stay in the town, even if you”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Ever since, yes. And what I did was that when he distributed his stock at $30 a share in two thousand six to all of his partners, I knew a lot of his partners. In fact, one of his partners is one of my friends. His name is Billy Mack, Mack Calley Real Estate. In fact, I was just talking to him the other day. We were playing golf in Florida. And he said, you know, I only know a few stocks. I know your Tesla you told me about. I know Iridium. I bought Iridium when you told me to buy iridium. It was $7 a share. It's now $47. And then Vale, I was an investor with Leon. And then when he sold, distributed all his stock at $30, or $28, I came to you because you were buying the stock. And I said, what should I do? And you told me, I told him, I said, Billy, what you should do is you should buy.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“In bankrupt, Leon Black bought the debt and turned into the equity and then brought the company public so he could pay back some of the money that he borrowed to buy this. And the stock was $16 or $17. And then my idea ever ever?”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“that they had from fifteen cents to twenty cents. So I thought there was a tremendous amount of leverage in the pricing that they had. And plus, they had this land underneath the bowl of the hotel. So there's something about the business that fell veil was the best mountain I had ever seen. Ski. I love skiing. It was the best mountain. Other people would have 600 acres, Aspen was 600 acres. Vale was 14,000 acres. And the big eye opportunity in Vale was that when we invested in it in 1976, it was $16 or $17 a share. And then Leon, so what happened in Vale is that it was controlled by a man named George Gillette who borrowed against the property and then built a radio station in Tallahassee, I guess it was, or somewhere in Florida, and borrowed $250 million.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I would go. My girlfriend at the time was in Washington. And when I would go down to Washington, I would go every weekend she would come to New York. I would go to Washington. And Big Macs, I couldn't wait to go have Big Macs. And they were like less than a dollar. They were 75, 80 cents, I don't know. And I felt that with McDonald's, the big opportunity was that they owned the land that was underneath of the franchisee's properties. The Coca-Colas were then incense for a Coke. Maybe fries were ten cents. Maybe the hamburgers were 20 or 25 cents. I said, oh my God, the profit margin that they're on the verge of making, they could raise the price from $10 to $15. And then all of a sudden that extra $5 cents is all profit. Or they can raise the extra fries from 10 cents to 12 cents or apple pie.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I was describing to you before about Disney and McDonald's and Federal Express and Nike in the nineteen seventies, I had remained an investor in all those companies. They were out 50, 60. And we were investing in Disney in the 1970s when they were building Disney World in Florida. They had Disney land in California, which was 5,000 acres, and everyone around them built other properties and made all that extra money in the orange groves in California. And in Florida, they said, okay, we're doing this differently this time. Instead of having 5,000 acres where we just have a park, we're going to buy 100,000 acres and we're going to have hotels. We're going to have all the other services. We're going to get the money from that. So I was investing in Disney in the 1970s when they were building Disneyland. I was investing in McDonald's at a time when...”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“at this lunch at this dinner. And then I don't know, maybe 100 people were there, 150 people, and I was up there and he said, and he calls me out from the podium about how people like Ron Barron were able to be offered. They're responsible, it would be crazy for me to have a business like ours that couldn't grow and all of a sudden we get this platform and grow. And for me not to realize that was a really big opportunity, having invested in it, we invested in it. We made fifty times our money, sixty times our money so far.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Coming in betting in 10,000 a day, $50,000 a day, $100,000 a day. And then we started growing. And so when I saw that happening and it all came from Schwab, I said, wow, I better really study Charles Schwab. And I studied Charles Schwab and I saw that people were leaving big brokerage firms to go on their own and then use Charles Schwab to clear. And they didn't want to sell the product that the brokerage firms that they were working for were asking them to sell or they didn't want to just raise money. They wanted to have their own business. And so it made sense to me. And I really like Chuck. In fact, he was just being honored fairly, I guess the last few years at some restaurant downtown. And he invited me to be one of the people.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“No idea who they were like you and RAs. And we learn about them and we learn that they're clearing through Schwab and they have Schwab has a platform. The Mutual Fund marketplace and then they had one source and we got people who were advisors to recommend to Charles Schwab, which was for $20,000, they would have to do the work and they weren't sure they were going to have a worthwhile spend on us and where was the demand. So we got a whole bunch of people to call. They said, okay, we'll put you on and they put us on and we started, they said a lot of people know who you are, but they didn't know how to buy what we're selling. And we got on the platform, funded well, we got recommended. One of the top fund choices. All of a sudden where we couldn't get any money.”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Something about every business, the most important element of the business, of course they got to grow, and you really got to like and trust the people. But what is important is about competitive advantage. What is it about these businesses in which you've invested, which we've invested, that give them a chance to last for a long time and get some pricing power? In the case of Charles Schwab, that was the, we had a mutual fund business, and in 1992 we had $100 million in management. 50 was the mutual fund, 50 was separate accounts. We could not make that business grow. 87 at 50 million in mutual fund. 1992, we had 50 million in mutual fund. It couldn't make a growth. And all of a sudden we get into Charles Schwab on the platform. We learn about financial advisors. We learn about...”
2021-01-29 · Masters in Business · Ron Baron on Investing in Tesla and SpaceX (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source