That today, we are here with ron baron at the baron onference we have a lot of things coming here the resort ceo will be joining us and hyatt ceo is going to be here these are three invesmentes of baron funds. Two of the three, baron already made over 1 billion on. Im not going to tell you which two. You have to stick around to find out. The other made several hundred Million Dollars already. We are going to talk about these issues when we sit down with ron, he talks about the broader markets, which he is very positive on them we are going get to that in a moment and we talk story stocks. Stories he sees from this bottom up investment that he does where he looks at things very, very closely, he and analysts we are going talk about the bargains they see along the way and the deals that are out there on the horizon hes sitting out there with us we are going get to him in a moment guys, its coming up in a few minutes. He did not invest 100 billion dlar to make a billion. He is far less than that, right . Reporter right exactly. He didnt invest 2 billion and now its worth a billion no, no, he made a billion dollars. We invested we had 100 million reporter dont say which one. 190 toet l for the firm we made 23. 5 billion. The old saying. A small fortune you have to invest a large fortune. Reporter no, not the case here we are going to dig into the details in a bit lets check out markets after all that movement yesterday after the Senate Introduced a bill that delayed the Corporate Tax cut. Other things in there that maybe are a little bit better, according to the wall street journal and the lead editorial. When you look at it, really not that far apart well see. Theres equity futures 37 points. Market was down 250 at one point yesterday, closed a little over 100. Nasdaq down 16 and s p down six. Overnight, in asia, the nikkei, which sort of hit resistance yesterday turns around and some attributed that weakness to the beginning of the sell off that we saw in the markets. Then you have the hang seng and shanghai is up hang seng is down. In europe, not a lot to talk about. Fractional losses across the board. Take a look at crude, which i did see was interesting. Almost 60, but not quite, 57 now, wti, a barrel President Trump talking trade at a meeting of asia pacific meetings in vietnam saying the United States could no longer tolerate chronic trade abuses and insist on fair trades. Make bilateral deals with countries on the basis of Mutual Respect and Mutual Benefit the white house said President Trump will not meet with his russian counter part, Vladimir Putin on the sidelines a scheduling conflict ruled out a formal meeting spokesmen said it was possible trump and putin could bump into each other well have more on the asian trip in a few minutes. Our top story of the morning is there, disney shares on a roller coaster ride after an earnings miss. They dropped, then did an about face as it has Conference Call got under way. The turn around happened on comments ceo bob iger made about pricing with the new branded app. We have given a lot of thought to pricing, both espn and disney brand of service. I cant get specific with you, yet. We havent officially determined it we said we will be forthcoming with you on this sometime after the first of the year. I can say that our plan on the disney side is to price this substantially below where netflix is iger said disney struck a deal with the last jedi. There will be a new trilogy and star wars for disneys streaming service. The new Star Wars Trilogy raises hopes that the companys fortune will get better. Joseph is this better for you . Are you up to speed on this . Yes, but i dont want to go off track because we are still on disney and i know you have bart and crockette here. Okay, but as far as the 30 , is that better for you, on this . For me . Yeah. I mean, that was a problem for you in the past. How about the estate tax yeah. All helps. You think it matters if we delay it to 2019 or gets done and its permanent the lower, the top rate doesnt go up. Theres a lot of elements that i think are better. Theres a lot of daylight between all the sides. You were busy yeah. Were you able to watch this at all i did i was in between things at lunchtime. Thats distracting. You know this gentleman was related to the guy at the alamo, right . Isnt that true, bar ton lets bring in barton crockette. Werent you related todavey . Tied to an uncle of davey crockette. You believe that . One of these days you are going to come on dont. In one of those hats disney was down. It came back, but it didnt exactly surge after this im not sure based on it is it because some of the content will only be on streaming so that shows they are serious about putting premium content on streaming is that why people said hey, this is interesting and cheaper than netflix look, i think nobody really knows. I mean, we are all grasping at straws to figure out what exactly will be the initial investment they make and how to think about the subscriber opportunity. You know, its certainly encouraging to think about disney leading to something that is going to be priced low, disney branded content i think one of the things that drove the rebound is they called a bunch of onetime items, eps and the miss wasnt nearly as bad. With disney stock, you are stepping into the void of faith right now. Do you believe that these guys can get out of the kind of muted growth secular questions and turn into a story people have more confidence in whether its more supportive of the multiple . We are not sure we are there yet. We are seeing in this earnings cycle evidence that the secular concerns are easing for the group. The number of subscribers to the paid tv services that declined lessons in disney, they flattened at fox and cbs is showing growth the big impact content network plays are benefiting from the skinny bundles thats a light at the end of the tunnel for the secular concern that is killed the stocks the past couple years. Disney was the canary for all this if you look at the stock, it started being effective. I guess it was did it start with espn and numbers, which it indicated cord cutting that was two years ago when is the last time disney hit a new high its been a long, long time. It was then it was august, an Earnings Report where theres a little slippage in espn low single digit slippage but i think some of the peers are showing they can stabilize that and grow it with the platforms the hope with disney is they can get there with skinny bundles and their own overthetop service if its priced attractively with arc of the story, maybe it will change in a couple years. Is there a problem thats specific to espn some of the cutbacks were, i dont know whether its good or bad for the stock. They were deeper than people thought. Is that a cord cutting story or does espn have issues . Nfl . People think its political. For a long time, it was the crown jewel of all cable its really lost some of that luster yeah. The viewership problem at espn is focused on sports news. How much news are you getting on your local phone and other sources. Theres been a plroliferation o games. Theres more games on fox, nfl that, i think, is weighed. On top of that, there eelss a o bad press for the nfl. Espn has those challenges. Disney is cutting back their expenditures on that part of it and leaning into their entertainment, their kids brands with this online subscription push that is, you know wharks they are saying is thats where they want to go as opposed to fighting the battle in sports. Do you rate stocks as buy, hold or sell do you have price targets . Of course where are you neutral on disney i have a 101 price. The secular concerns are not enough where i want to put my next dollar in disney. I recommend cbs, cheaper equity, better exposed to growth opportunity, i think theres opportunities in the tv Station Companies trading at four to five times free cash flow, but close to the growth size of broadcasting barton, im hearing voices in my head. Thank you. Great, thank you. Okay. Thats the capital right now lets get back to becky quick at the baron Investment Conference. You are back take it away reporter im back. We have been here. We have been listening its been an interesting morning, already thank you, joe our cohost for the next two hours an host of the 26th annual baron Conference Today at Lincoln Center is ron baron, the ceo, cio of baron funds. Thank you for joining us thank you something went wrong with my ear. Thats okay you dont need it for the moment this is the 26th annual conference you put a lot of effort into it every year explain to people what it is and why you get folks together we are trying to let people understand when they invest with us, they are not investing in us, they are investing in the companies we choose. We keep investing our business, hiring, retaining people so they can identify businesses that are going to grow a lot and theres something about them that is competitively advantaged we can hold them a long time the average Holding Period for our funds is eight years, maybe. For baron growth fund, the funds i manage, the largest, 14 or 15 years. Publicly owned companies whats cool about that is, even better, that fund has outperformed the market by 500 or 600 points a year since the founding which mean what is in terms of overall growth . Compounding is 13 some on percent and the index competing against is seven its with 80 volatility what we are trying to do is show people its not really us, its these companies we have invested in long term thats what they are invested in we want them to see the executives, look them in the eye, see if they feel like they are smart, honest. Theres a lizardlike, gecko gene you have that lets you understand if people are honest, straight or smart. You can figure that out. We want people to see these executives and do that for themselves, and thank them the theme for the conference is disruption. How did you come up with that theme . By reading the papers and understanding what is going on in the country everything is changing political norms through being disruptive and, you know, theres a lot of parts of foundational elements of our democracy, which are being attacked whether its freedom of press or freedom of speech or freedom of religion. A lot of things are under attack thats disruptive. So, thats where the idea comes from when i was thinking about that, i started thinking about, gee, this is like what happened in the 1960s and 1960s, you had vietnam, you had civil rights rk womens rights, marches on washington and you had all these things and this very rough assassinations of president kennedy, his brother, Martin Luther king, incredibly disruptive period, then a few years later, impeachment of president nixon or he resigned before he was impeached. This length of were you pinging that to now . I thought it was companies disrupting and as a result, getting ahead of competitors the point i make is the positive disruption you are describing comes from this incredible disruption in society happening all around us. In fact, i looked at this period in 202017 it is very, very disruptive period not just for politicians we have now, but if you think about 9 11 and you think about the Afghanistan War and iraq, you think about all the things that have happened, financial crisis, almost a depression. Think about those things, oh, my god, this must be awful. Stocks keep going um thats for 17 years during this period go back to the 60s and see the same thing then go back to the 1930s and 40s and its the same thing from disruptions, thats what creates opportunity. That creates ability for growth. Thats the point i want to talk about today. The market has been phenomenal over the last year, since the election or what we have seen taking off you told us in the past, when you look at stocks you see 35,000 to 40,000 for the dow you now think its a lowball estimate it may be low we are talking about it, market is 18,000 or 19,000 and the dow made 23,000. The dow jones, as a shortcut, you compare to the gdp of the country. They were both, you know, economy was 20 trillion and maybe the market was 18 or 19. A little underpriced now the economy is a little over, the market is a little over that. The idea is, the stock market relates to the economy sooner or later, they get to the same plalce, not at the same time, but at the same place whachlt happens is sometimes it gets out of whack and sometimes the economy keeps growing and the market doesnt or sometimes, at the end, its the same. Thats 6 or 7 a year, including inflation. 2 or 3 real, 4 inflation. People say theres no inflation. Thats ridiculous. There is inflation, think of anything you buy and salaries. Six or seven is the economy. Double 11 or 12 years. The stock market doubles every 11 or 12 years so the stock market will be 30,000 that may be low because Interest Rates are so low why do you think growth is going to be faster a couple really important factors, well, three since 1973, thats when opec raised the price of oil from 10 a barrel to 30. Thats the oil embargo, people waited in line that messed up our economy then it got to 147 a barrel 1030 to 147 in 2008 that was a big penalty on our country for growth that was number one. Number two Interest Rates, when i started in business in 1982, Interest Rates were 18 now, they are almost nothing now, you have the banks have all been recapitalized, you have lots of capital. Capital is not a constraint on the economy. You have businesses because of technology becoming capital light. Then you have technology, which is reducing costs for businesses and making a lot of new businesses that didnt exist before and a lot of extra services you didnt have before. Essentially, you have low cost energy, low cost money and Technology Driving everything. Thats on the positive side. The other side is the value of your money everything you keep in your pocket and savings account is falling in value every day the only thing you know for sure, you dont know if the market is going up or down the value of your money is going down what we think of that is taking the value of your money, taking money, sitting in the bank, you know its falling in value and lose zing. Take that money and buy something that is increasing in value. You are protecting yourself. Thats the concept ron baron is our guest host for the next two hours we are at the annual baron conference in the meantime, when we come back we have a lineup from the baron con frenls later this hour, we have veil resort ceo rob katz. Then we are talking with the ceo of Charles Schwab. Walt stay tuned lots to come well be right back. The amazing new iphone 8 is at at t. And we know youll love it. Because we know you want more. More great camera features and more power. And more than just unlimited data, we give you unlimited plans with hbo included for life. Because you deserve more entertainment. And more spokespeople. Talking like this, saying the word more. At t. Its time for more. Am i too close . I feel like im too close. Get the iphone 8 and with all at t unlimited plans, get hbo for life. Only from at t. Swho live within five miles of custyour business . 54, like these two. And that guy. Or maybe you want to reach women, ages 18 to 34, who are interested in fitness. Namaste. 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Its like, things are moving people cant believe it. They are fainting. The two broadly overlap cutting taxes on businesses and making changes to the individual tax system there are differences. The senate plan doesnt repeal the estate tax, just doubles the amount thats exempt and leaves the mortgage Interest Deduction unchanged at 1 million, not 500,000 President Trump left china and is in vietnam today. Overnight, he sent out a strong message on trade at a meeting of asia pacific countries kayla is here to bring us up to speed on what he said. Kayla . Reporter joe, President Trump was the opening keynote at the apex summit, a gathering of 21 nations that is grappling with his decision to withdrawal from the Transpacific Partnership early in his presidency a group of countries, led by japan and excludeing the u. S. Is set to agree in principle to a deal that represents a third of the gdp of the original deal in his speech, President Trump took the virtue of America First and the bilateral deals. What we will no longer do is enter into large agreements that tie our hands, surrender our sovereignty and make meaningful enforcement practically impossible reporter in his comments, he undercut the World Trade Organization calling it inefficient and called out rule breaking members like vietnam and china and the competition by joint ventures, forced technology transfers, cyber theft and state owned enterprises. Thats coming after a relatively friendly summit where president xi and trump got along famously. They said that summit where there were a slew of ceos in attendance broke new ground for business we have 18 facilities here, 5,000 employees, all of them locals what doe