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“Don’t buy Bitcoin” says Ron Baron

Photo of: Nathan VDH
by Nathan VDH

Investing in Bitcoin is not an option for investment manager Baron Capital and its founder Ron Baron. According to him, BTC is pure speculation, even if he admits he still does not understand crypto.

Bill Gates recently warned investors who want to emulate Tesla’s billionaire and CEO. Gates suggested that Musk had access to sophisticated trading techniques. This could explain his interest in an asset as risky as Bitcoin.

Another investor claims to be in this category. Nonetheless, Ron Baron still strives to seek the interest and value of the crypto-asset, whose price continues to skyrocket. The BTC could reach $200,000 to $250,000 by the end of 2021.

However, this was not enough to trigger a change in the founder of the investment management company Baron Capital. Described by some as “the best version of gold”, Bitcoin does not interest Ron Baron.

“We don’t invest in Bitcoin, we don’t invest in gold. We’re investing in growth stocks,” he tells CNBC. However, this is not the only argument of the investor.

“I’m a relatively demanding investor and I still don’t understand. It’s a speculative investment,” Baron says. So the company’s preference is to help its clients invest in growth stocks.

Nevertheless, Baron Capital remains indirectly exposed to Bitcoin. Indeed, Decrypt reminds that the manager holds more than 7 million shares of the manufacturer. In February, the firm invested $1.5 billion in Bitcoin.

However, cryptocurrencies was not the argument justifying the acquisition of Tesla’s shares. The volatility of the BTC should not be a counter-argument, however. Indeed, the manufacturer’s share belongs to the most volatile class of shares on the market.

Not enough to move Ron Baron despite everything. He shares an anecdote with CNBC, referring to the investment in the BTC of one of his neighbors. A few years earlier, he had invested $800 in crypto.

This capital reached the value of 23,000 dollars, before falling back to 15,000 dollars. The conclusion and the recommendation of the financier to this investor? Sell his Bitcoin and buy Tesla shares instead.