Squawk Pod: Ron Baron on Elon Musk’s Trillion-Dollar Pay Plan

Date: November 14, 2025
Host(s): Joe Kernen, Becky Quick, Andrew Ross Sorkin
Guest: Ron Baron, Chairman & CEO, Baron Capital

Episode Overview

This episode of Squawk Pod centers on legendary investor Ron Baron’s unwavering faith in Elon Musk and his companies, especially in light of Musk’s proposed, eye-popping $1 trillion pay package. The conversation delves deeply into Baron’s investment philosophy, how he views Musk’s impact on Tesla and SpaceX, and why he remains heavily concentrated in these holdings. The hosts also cover breaking business news—including Walmart CEO Doug McMillan’s retirement and the Under Armour/Steph Curry split—and explore market themes such as affordability, inflation, and the disparate performance between tech giants and the rest of the market.

Main Discussion Points & Timestamps

1. Market Volatility & Economic Overview

[02:08–07:38]

• Becky Quick summarizes recent stock market pullbacks: Dow, S&P, and NASDAQ are close to all-time highs, but tech stocks face notable angst.
• Discussion of “affordability” as the new economic buzzword, citing inflation’s lingering impact and its effect on real wages.
• The removal of tariffs on certain Latin American imports is expected to help reduce consumer food prices (e.g., bananas, coffee).
• Brief commentary on how affordability and wage pressures have factored into recent elections and consumer sentiment.
• Quote [04:17]:
  Joe Kernen: “Affordability is the new buzzword.”

2. Major Business News: Retail & Media

[07:39–09:46]

• Breaking: Warner Bros. Discovery facing possible sale, with Paramount, Comcast, and Netflix among potential bidders.
• Under Armour and Steph Curry end their long-standing partnership; Curry now controls his brand outright and Under Armour prepares for an expensive restructuring.
• Discussion about product marketing, star power in retail brands, and how companies adapt during internal transitions.

3. Ron Baron Interview: Investment Philosophy & Market Insights

a. Investment Track Record & Approach

[11:47–14:39]

• Ron Baron reflects on Baron Capital’s growth from $100 million to $45 billion in assets, with $52 billion in profits created for clients since 1992.
• Emphasis on long-term investing and focus on innovative companies, especially in technology and AI.
• Highlights that returns have heavily favored tech giants—removing top stocks turns market returns negative for smaller and mid-sized stocks.
• Quote [12:37]:
  Ron Baron: “We managed $45 billion. We made $52 billion in profits. And I started off in debt and now I’m not in debt anymore.”

b. Views on Inflation, Bonds, and Gold

[14:13–16:55]

• Baron asserts belief in the doubling of the stock market and economy every 10 to 12 years.
• Warns that the real value of money halves every 15 years due to inflation—making bonds unattractive compared to equities.
• Tells a personal anecdote about buying physical gold for security post-9/11 (“GTF money”) and skepticism about gold ETFs’ utility in crisis.

c. Tesla, SpaceX & Musk’s Pay Plan: The Anchor Segment

[16:55–26:33]

• Ron Baron reports $8 billion in gains from Tesla and $4 billion from SpaceX, expecting to 5x those totals over the next decade.
• Endorses Elon Musk’s $1 trillion pay plan, validating Musk’s unique role as an “artist” visionary akin to a modern-day Da Vinci, not just an industrialist.
• Baron maintains more than 65% of his personal investments in Musk’s companies, citing high conviction and willingness to take concentrated risk—personally pledges to be “the last person out” of Tesla/SpaceX.
  • Quote [18:10]:
    Ron Baron: “Personally, it’s about 40% in Tesla and about 25% in SpaceX and the balance 35% in our mutual funds.”
  • Quote [21:05]:
    Ron Baron: “I will not sell a single share of my company, of my shares, until my clients have sold 100% of their shares. And I don’t expect to sell in my lifetime—Tesla or SpaceX, either one.”
• Views Musk’s ambition as legacy-driven rather than wealth-driven; Musk’s pay only materializes if Tesla rapidly increases in value.
  • Quote [22:45]:
    Andrew Ross Sorkin: “So you think he’s playing for legacy?”
    Ron Baron: “Yes, definitely. What else could you do?”
• Tesla’s future: Baron is bullish on the Optimus robot project, projecting production of a million units next year and aiming for 1 billion units annually at $20k each, anticipating a leap to “sustainable abundance.”
  • Quote [23:57]:
    Ron Baron: “Whole biggest thing ever. And so next year is going to be a million of those units. And, and he thinks 10 million after that… He thinks it’s a billion a year that he’s going to be able to make in these robots. Think about that—a billion a year, $20,000.”
• Discussion of FSD (Full Self Driving): Baron praises the technology’s progress; he believes regulatory acceptance will follow when society realizes its safety benefits.
  • Quote [27:08]:
    Ron Baron: “When everyone realizes how much safer it is to drive and all you do is get in your car and tell you where one—where you want to go and it’s safe, it’s all about safety, then regulators will approve it.”

d. Conference, Company Culture & Other Holdings

[27:28–32:23]

• Baron Capital’s annual conference theme: “Changing Lives”—double meaning for improving both client and employee futures.
• Baron emphasizes democratizing wealth-building within his firm; even receptionists have stakes in SpaceX.
• Notable holdings discussed: Shopify (infrastructure for business growth); Gartner (advisory for big companies on tech spending); “On” sneakers (how consumer brands adjust amid competition)—shares stories of market volatility and the outsized impact on smaller stocks.

4. Further Breaking News: Walmart CEO Steps Down

[33:43–37:50]

• Walmart CEO Doug McMillan retires at 59 after over a decade; credited with quadrupling Walmart’s market cap and leading the company’s digital transformation.
• Discusses legacy, succession (John Furner named new CEO), and how internal promotions sustain company culture.
• Reflections on McMillan’s philosophy, “thinking like an innovator,” and the impact on Wall Street sentiment when making tough decisions for long-term gains.

Notable Quotes

• On Long-Term Investing:
  Ron Baron [14:39]: “The value for money falls and falls 4 or 5% a year, that’s inflation. And the economic growth has been about 2% a year. So it’s about 7% a year growth. And that means everything doubles in 10 years.”
• On Elon Musk’s Motivation:
  Ron Baron [22:44]: “Why is he working these crazy hours? Why is he risking his health?...He wants to think about how people will remember him someday, what he’s created, how he’s helped humanity survive.”
• On Risk and Concentration:
  Ron Baron [19:13]: “It’s obviously riskier if you put a large percentage of your money in one entity… I do not expect to sell in my lifetime—Tesla or SpaceX, either one.”

Memorable Moments

• Baron’s pledge not to sell:
  “I told the board, if you let me invest in this...I will promise that I won’t sell any of my stock… I will be the last person out of the stock.” (21:05)
• Tesla’s future:
  “I think about 2,500 [dollars] of where [Tesla] stock’s going to be in 10 years, and I think it’s going to be four times that.” (23:05)

Additional Highlights

• The episode’s tone is conversational and candid, true to the Squawk Box style—mixing banter with institutional insight.
• The panel continually circles back to themes of long-term thinking (vs. market timing or pessimism), the impact of innovation, and the human stories behind corporate headlines.

Segment Timestamps for Key Insights

• [12:37] – Ron Baron on Baron Capital’s growth and client profits
• [14:39] – Baron’s macroeconomic view: stocks, bonds, and inflation
• [17:15] – Tesla and SpaceX returns, portfolio concentration
• [18:10] – Ron Baron’s personal exposures to Musk’s enterprises
• [21:05] – Baron’s “last to sell” promise and rationale
• [22:44] – Musk’s personal motivation
• [23:57] – Tesla’s robotics/AI ambitions and business model evolution
• [27:28] – Baron’s “changing lives” investment philosophy
• [33:43] – Walmart CEO Doug McMillan retirement news and commentary

Summary

This episode provides a focused window into how a veteran investor like Ron Baron thinks—his faith in Elon Musk and multi-decade patience with high-conviction bets; the discipline of not selling core holdings; and his belief that both technology and ambitious leadership drive societal progress and outsized returns. Listeners also receive timely business news and broader reflections on how innovation and volatility are reshaping markets and legendary companies alike.