Billionaire Investor Ron Baron's Investment Strategy: No Bonds, No Cash Hoarding: 'Whenever I Have A Chance...I Buy More'

Billionaire investor Ron Baron recently disclosed in an interview that he has never owned bonds and instead focuses his investments on assets despite the rising U.S. inflation and burgeoning national debt.

What Happened: Baron, the chairman of Baron Capital, made this disclosure in a CNBC interview on Friday, reported Business Insider. He maintained an optimistic stance on the market, affirming that he was buying assets every day.

Baron expressed his concerns about the impact of government spending and borrowing on inflation and debt repayment. 

“They pay it back by making your money worth less,” he said, estimating that inflation could halve the value of cash approximately every 14-15 years with an annual inflation rate of 4%-5%.

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When questioned about his stance on bonds, Baron said, “I’ve never owned a bond… I don’t have a lot in cash either. I’m always invested. And whenever I have a chance to buy more, I buy more.”

Why It Matters: This revelation comes as the financial markets show decreasing interest in new U.S. debt due to the escalating federal deficits. A recent Treasury auction of $24 billion of 30-year bonds saw a muted response from investors, pushing primary dealers to cover the shortfall and consequently driving yields higher.

With deficits anticipated to stay large, Bank of America predicts the total public debt balance could surge to $50 trillion in the next decade, a significant increase from the current $33 trillion.

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