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.
Baron Capital's Ron Baron has owned Tesla Inc (NASDAQ:TSLA) stock since 2014 with a cost average of $42.88. The stock just reached a $1 trillion market cap, but Baron isn't thinking about selling.
"I think we'll probably be invested for another 10 years at least," Baron said Wednesday on CNBC's "Squawk Box."
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Baron said he spent years researching Tesla and speaking with CEO Elon Musk before ultimately deciding to invest. At that time, many people disagreed with the investment and told him it wasn't going to work because Musk wasn't focused on generating a profit in the short term.
Baron looks to invest in businesses that are willing to put off short-term profits in order to become much larger businesses.
"The way we invest is that we're investing in businesses that are investing in themselves," Baron told CNBC.
Tesla has used its profits to build multiple factories across the world, expand its vehicle lineup and start new businesses, he noted.
See Also: After Tesla Hits $1-Trillion Valuation, Analyst Says Automaker Must Focus On These 2 Key Issues Next
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Baron On Musk: Baron brought up the 2020 Tesla impact report to the interview and said "read this report. This is why you own Tesla. Read this report. And if you read this report, there's not any way you are ever going to sell it."
Musk has dedicated himself to making humanity survive, Baron said, citing the rapid development of electric vehicles and the advancement of private space exploration.
Tesla and SpaceX have become the two most popular companies for engineers graduating and seeking professional careers, he said, adding that Tesla and SpaceX would not be where they are today without Musk.
The billionaire investor said the biggest risk to Tesla investors moving forward is the health of Musk.
"He's healthy and I'm hopeful he stays healthy for a really long time," Baron said.
TSLA Price Action: Tesla has traded as high as $1,094.94 and as low as $379.11 over a 52-week period.
The stock was up 1.54% at $1,034.10 at the time of publication.
Photo: Tesla Model 3, courtesy of Tesla.
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.