27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
One of the biggest Tesla Inc (NASDAQ:TSLA) bulls and early investors in the company is doubling down with a new prediction for the stock.
What Happened: Ron Baron, who heads Baron Capital Management, predicted in 2016 that Tesla would become one of the most valuable companies in the world.
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“We invested $380 million between 2014 and 2016, which was 1.5% of our assets at the time,” Baron said in an interview for Bloomberg Wealth With David Rubenstein on Sept. 14.
Baron Capital Management owned around 1% of Tesla in 2016.
The bet has turned an investment in shares of the electric vehicle giant into a $4 billion profit for Baron. The fund manager sees Tesla shares gaining another 300% to 400% over the next 10 years.
“With Tesla, I thought the opportunity was to convert the cars that we make in the U.S. from gasoline to electric and that hadn’t been accomplished before," he said.
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Baron said Tesla fought against car dealers, automobile companies and the oil companies, which wasn’t easy but he saw a bet on Elon Musk.
Baron owns four Tesla vehicles and said he sees the company leading the way in the future: “They’re innovating at the speed of light,” he said.
Related Link: Tesla Megabull Ron Baron Says It Was Painful To Sell 1.7M Shares/a> Why It’s Important: Baron started his company in 1982 with $100,000. The fund company now has $56.7 billion in assets under management from institutional and individual investors. Baron owns around 5% of the firm’s assets. Baron Partners Fund outperformed 99% of peers over the last three years. The Baron WealthBuilder Fund beat 90% of funds over the same time period. Having a high conviction on Tesla’s future growth follows a similar approach to Cathie Wood and Ark Funds
Tesla’s market capitalization is $742.1 billion, making it the sixth-largest publicly traded U.S. company according to Assetdash.com.
TSLA Price Action: Tesla shares are down 1% to $750.83 on Thursday.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.