SpaceX just went public at one of the highest values any company has ever carried. Ron Baron's response was to buy a billion dollars more.
His firm now holds a SpaceX stake worth about $25 billion. He says he has no plans to sell any of it.
An IPO is when a private company first sells its shares to the public. SpaceX's was the biggest one ever.
It priced near $1.75 trillion, then the stock soared after listing on the Nasdaq under the ticker SPCX. That run pushed SpaceX's value past $2 trillion.
Baron Capital first bought in back in 2017 through employee share sales. It kept adding through 27 funding rounds over nine years.
That makes Baron one of SpaceX's earliest and biggest backers on Wall Street.
The firm put in close to $2 billion in all. That stake is now worth around $25 billion.
Along the way, it has booked an estimated $12 billion to $13 billion in profit. The fresh $1 billion buy was about holding his slice of the pie.
When a company sells new shares, older owners shrink unless they buy more. So Baron bought more to keep his share of the company.
Demand for the IPO was strong, with big funds and everyday buyers all fighting for shares.
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Most investors would lock in a win like this, but Baron thinks the big returns are still ahead.
"I think we're going to make hundreds of billions of dollars," he said on CNBC's "Squawk Box."
He added that a $2 trillion company could be worth "$20 trillion, $30 trillion, $40 trillion" in 10 years.
That's a huge claim. It comes from the investor who turned a Tesla bet into billions by refusing to sell.
His Tesla bet earned his firm an estimated $7 billion to $8 billion. He expects SpaceX to top that.
He says that's just how he works. He buys businesses he believes in and holds them for years, not days.
"I'm not a trader. I'm just an investor investing in businesses that are run by people who I admire," Baron said.
Starlink is SpaceX's satellite internet service, and it's the cash engine behind the company. It is the part of SpaceX that actually turns a profit.
The case rests on Starlink's growth and a push into AI, not just rockets. Rockets get the headlines, but internet and AI pay the bills.
Baron is 83 and says he won't sell in his lifetime. That's about as clear a vote of confidence as an IPO can get.
For him, the IPO isn't an exit. It's a chance to own even more of a company he loves.
The market will judge whether that faith pays off.
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