Squawk Pod Ron Baron on Elon Musk’s Trillion-Dollar Pay Plan 11/14/25
Nov 14, 2025
Ron Baron, a seasoned investor and chairman of Baron Capital, shares his insights on Elon Musk’s ambitious trillion-dollar pay plan for Tesla. He discusses the future of Tesla and SpaceX, emphasizing the potential of innovations like Optimus robots and Full Self-Driving technology. Baron also details his substantial profits from Musk’s ventures and outlines his long-term investment philosophy amid market fluctuations. He reveals his reasons for supporting Musk's pay package, citing Musk's transformative vision and legacy.
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Market Gains Are Highly Concentrated
- Tech and AI drove almost all market gains while most smaller and midcaps lagged this year.
- Excluding the top stocks, overall market returns were negative, showing extreme concentration.
Why Stocks Must Outpace Inflation
- Long-term market growth averages about 7% annually, driven by inflation plus real growth.
- That implies money halves in value roughly every 15 years, so stocks must outpace inflation to preserve wealth.
Buying Gold As An Escape Plan
- Ron bought physical gold after 9/11 as "GTFOH" money and faced his wife's skepticism.
- He recalls buying coins at $400/oz and later seeing gold reach much higher prices.