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Baron's $25B SpaceX Bet: A $40 Trillion Gamble?
12 Aug
Summary
- Baron invested $2 billion, now holds $25 billion in SpaceX.
- He projects SpaceX could reach $40 trillion in 10-15 years.
- This mirrors his successful multi-billion dollar Tesla investment.
Billionaire investor Ron Baron revealed that Baron Capital has amassed a $25 billion position in SpaceX, starting with approximately $2 billion invested across 27 transactions since 2017. Baron projects SpaceX will achieve a valuation of at least $40 trillion within the next 10 to 15 years, beginning from a $2 trillion IPO valuation.
This investment strategy echoes Baron's previous success with Tesla, where he invested $400 million between 2014 and 2016, ultimately profiting $7.7 billion. He is known for his long-term approach, holding investments through significant drawdowns to capitalize on compounding growth.
Baron Capital has grown substantially, from $100 million in 1982 to $70 billion as of June, with SpaceX now representing over a third of its total assets. He aims for SpaceX to deliver 20 to 30 times returns from its IPO price over the next decade.
