The rallying cry for some investors has been "go woke, go broke."
Those investors point to the recent successes of the Bud Light (BUDFF) and Target (TGT) boycotts, recent movie flops at the box office for Disney (DIS), and a host of other examples to say that investing in the political left's policy initiatives is a recipe for disaster.
DON'T MISS: DeSantis' Anti-ESG Law May Force Key Business to Leave Florida
But billionaire investor Ron Barron pushed back on that notion Friday, saying that his investments based on environmental, social, and governance (ESG) ques is paying off handsomely for himself.
"A lot states are trying to pass legislation saying you shouldn't consider those factors, and only consider how you can make the most money," Baron told CNBC. "We do consider those factors. We do consider good governance."
"To argue against the idea that only making the most money is what's important, we've been conscious of this (ESG) and we have outperformed."
Baron, who's Baron Capital mutual fund is one of Tesla's (TSLA) biggest boosters, says that 98.8% of its funds have done better than the market and 45.5% are in the top 1%.
He also said that Baron Capital has been the top performing mutual fund since its inception since 2003 using ESG investing as a guiding light.
Baron could be specifically pushing back against Florida Governor, and 2024 presidential candidate, Ron DeSantis, whose state government will be implementing its Government and Corporate Activism Act on July 1.
The legislation would penalize state-registered banks if they denied services to the oil, gas and weapons industries.
Banks who say they are dedicated to climate change and do not plan on providing services to the oil and gas industries have threatened to leave the state.
Check out Baron's interview with CNBC below.
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