Because we are attending the annual baron Investment Conference. The man behind it, ron baron, will be joining us for the next two hours in just a moment. We will bring along some Portfolio Managers and the ceos of some of the best performing investments. First, andrew and joe have some of the mornings top stories. Guys, how are you feeling this morning . I dont know how were feeling this morning. Joe has his eyes closed. Thats how were feeling this morning. I rolled in about 5 44. Yeah. I had about ten minutes before. Come on, bright eyed, bushy tailed, boys, we are ready to go. Were raring to go. My buddy, mac, said coffee, joe . And you know i why are you . Thats the first thing he said to me. You never drink coffee. Yeah, i dont. But i might. I heard you asking for decough. I didnt understand that. Becky drinks coffee. I drink decaf every morning. Becky, you didnt go back to the garden state, did you . Or did you . No, i didnt. Okay. In a in a hotel. It was a long pause. And andrew, you live there. I just went home. I had to get all the way home and anyway, you got ron baron, and i just think you have a lot to talk to. I have ron baron who is tanding right here. Just take it away, becky. Dont feel like you need to save time or something. No problem. Its all about us today. We dont want to hear from you guys, anyway. Fine. Well talk about the jobs report. Were going to get the october employment report set to be ready at 8 30 eastern time this morning. The economy likely added 233,000 jobs last month. The Unemployment Rate seen Holding Steady at 579 . Thats the number to watch. And average Hourly Earnings are forecast to increase by 0. 2 . Take a look at futures ahead of that report. Of course, these numbers likely to change everything at 8 30. The dow looks like that right now. The expectation is up by 10 points, s p by a 0. 8 and nasdaq up by 7. 5. With elections coming up oh, no, no, no. Now its about hillary, its about what kind of economy the Obama Administration is going to hand off. I know. But you can never wait a second. I was going to say we really cant hype it today. I still think we can. And i think we can because lately we have seen the notion that we have passed the baton. That the economy is now like melody hop last night b she used jumper cables. By the way, we have star wars because George George lucas was right there. He was. And well talk about star wars. Anyway, this is still a michelle, harry lofton, i dont know where she is. Well have her. Its an important number today, andrew. It is. And i would say that, like, for republicans, finally they can say i want the biggest number we can possibly get because the midterms i know thats a bad thing to say. It is cynical. Didnt you say you wanted the number to go up before . People do have interests before and after elections. In this case i didnt realize. Yeah. Im talking about traders, as well. At this point, were really to embrace good news all around. I wish it would get up to like 300 some day. Wages go up and everything starts itself. If the numbers are good for the next couple of months, would gets credit . The republican senate. We have some other news this morning. Im going to put this in the bad news category, though, with corporate news. Another bank forced to adjust earnings because of legal costs this morning. Yeah. I have my caffeinated coffee. Youre ready to go . Howard shurlts was there, too. You normally wouldnt have to do this. I do this because i like you guys. Yeah, but you were still there when i left, right . Yeah, well, you know did you go somewhere after that . No, i didnt. I turned in so i could sit here and bring you the news. Was it yesterday when you turned in . No. It was after 12 00 . No, no, it was 11 00. Come on. Were talking about bank of america. After the bell yesterday, the company restating its Third Quarter earnings. Roughly 400 million new legal charge larger on the back of advanced talks over a probe involving alleged currency market manipulation. This takes bank of americas earnings for the quarter prolonged at 4 cents a share rather than the 1 cent per share. Analysts had been expecting a loss of 0. 9 . So in large form for the banks, but, of course, yet another addition to those tabs for the bank. And this foreign currency probe is something that has been in the works for a long time, but its relatively new, the bubble to the secrets. But when bank of america filed the Quarterly Earnings filing after the bell yesterday, it did get some interesting language about how advanced these talks might be. And thats actually the first time that were get something language. And i want to read this to you. The banks in particular in late october, the corporation is the formal draft documents with banking regulators concerning the imposition of mandatory remedial measures, penalties associated with its fx business and its systems and controls. You know this probe is something that has been spearheaded in the u. S. By the Federal Reserve, the comptroller of the currencies, the cscc as well as the department of justice. Some have risked sentiment as advanced in this language from bank of america will involve all of those four authorities here, just some of them. So that at some point, guys are back a broader settlement with some international regulators, as well. Its not just bank of america, either. Several firms, citigroup last week on the same issue the foreign currency shows. And there was a conference going on in the stocks with you guys. Theyre now saying, well, maybe we should just as a line item Going Forward for the banks. Because of something that the consumer coming out of the woodwork. But well always do something, no matter how far away we get from the financial crisis. There is no cost box there. I was looking at you in high de def, even though you were youth is an incredible thing. Makeup is already an incredible thing. Youre absolutely flawless. Then they come back to me and its like whoa the makeup artists do all things. Sth squawkward moment is brought to you by joe kernen. This is not awkward. This is a compliment. What do you need after a night like last night . Im going to sleep for an hour or two when i get home. I am. Disney masking estimates. Revenue at its Media Network trailed and closed at a record 92 before earnings were reported after the bell. Julia boorstin will join us with her conversation with bob iger in the next half hour. First, polar earnings fell short of consensus. The company says its not going to spin off its solar power plant into a separate entity as some of its rivals have done. I guess that is somewhat responsible moving the stock down over 7 . Becky, its 6 09. Well see you at 7 00 . Sounds good. No, at 8 00. Ron is on with us at 8 00. No. I mean youll toss backs to you, well see you again at 7 00 . Yeah. I did, too. Take it away. Where is ron . Is he there now . Anyway, listen up, ron is sitting right here. Hes waiting at the camera. We are live at the 23rd annual baron Investment Conference. This year aelss theme is built to last. Our host today is ron baron, chairman and ceo of baron capital. Good to see you this morning. Its great to see you. Were talking about how this started. Its been 23 years, which is amazing to me. The very first conference, what happened . Where was it . It was at the harmony club in new york and there were 35 guests and 45 speakers. Every one of the 35 guests was a friend of mine. I had to ask them to come so i wouldnt be embarrassed. I knew every Single Person there. How many people will be here today . 6,000. Yeah. Theyre already lined up in a holding tent outside waiting to come in this morning. Baron capital has grown along with the number of guests that have come along. Talking about that, the last time you had me on television, you had me talking to Steve Liesman and i was saying that i didnt really believe in economists, i believe in Fortune Cookies. And then i had a dinner the night before, my wife had takeout. And the fortune i had then was all the effort youre making would ultimately pay off. That was last time. And then about last week, we also had a takeout dinner when we came home. I opened up my Fortune Cookie and there it was, many will travel to hear you speak. All right. Thats perfect. Many have traveled to hear you speak here today, ron. Pretty cool. What are you going to tell people this morning . Looking at the markets at this point, seeing how far weve come over the last several years, what do you tell the investors who show up . Well, im a longterm investor. And as ive told people for a very long time, i didnt start out to be a longterm investor. What happened is when i was selling when i was young and i was recommending nike, disney, mcdonalds and federal sxers at the beginning of my career, what happened is that i made doubles and triples and quadruples and fold them and then that over a number of years, what happened is they had gone up 30, 40, 50 times. I said oh, my god, what a terrible mistake ive made. And you cant just invest in your company and expect it to last. Theres a lot of elements that go into it and its not just about having a special kind of business. You develop a people and establishing a culture. We invest in people that make these differences last for a very long time. And a couple of examples that i used in my speech today that im talking about are the differences that people it sounds great. Im investing in business is going to last. People think theyre going to last and you can using kodak, for example, they were giving kodak stock in order to help you pay for college. And then what happened is photography became digital, and they explored it. And instead they thought it threatened their film and paper business. What happened . They went bankrupt. So they should have been a leader and they werent, they went out of business. It is easier for a culture. How do you identify the place that is not going to get passed up and disruptive . Its the idea that the people and the business, the way they think about their business. They think about a risk aversion. The individuals who run the businesses, are they investing, even though its going to penalize current earnings. So you have to understand the personality of individuals with younger businesses to be able to invest in that business for comfort. People have been first identify what is the competitive advantage of the business and after they do that, why other people cant do it. Ultimately, when other people do do it, they have to make sure that the people who are running those businesses are going to be fast enough on their feet and innovative enough in their stocks to be able to make their business pivot and do something differently or take advantage of the opportunities. If theyre a leader, they should be able to figure out how to make it more palpable and lasting. Lets talk about an example of one. I think one of your Largest Holdings and schwabb. Am i correct on that . Yes. What do you see in schwab . How do they live up to that bill . Schwab was our largest. Then in 1992, business was 150 million. The in 1982, 1034 billion. Its a 50 Million Mutual Fund and nobody could do business with you. You have to put a check in the mail, send it to north carolina. So they opened a check and you cashed the money and you couldnt get your money back without a signature guarantee. Impossible. All of a sudden, Charles Schwab comes along with this program for the marketplace where you can value the funds on the phone and business continues to grow and they say oh, my god, look whats happening. Suddenly major change had taken place. Everything Charles Schwab has done over the years, keep trying to do differently. And making Better Service to the clients. And forget about the zone today. Its all over the internet now. Yes. And, in fact, what happened with Charles Schwab early on, this is the internet business. Why do they need any offices . What happened is they were short of money and he had to, he was in sacramento and they wanted to have a business and he says, look, ill give you some money, but you have to open up an office where you have somewhere to go during the daytime. So they open up an office in act men toe. That business starts to go dramatically and you see, geez, this is very interesting. Be aware of whats happening in your business. If something happens, you take advantage of it. Thats what schwab does. Weve also made it the biggest profit. The biggest profit in any stock that you held . Yes. So we have over the years had people from valors in the last 20 years to management, made 18. 5 billion in profit for them. Of the 18. 5 billion, a billion to each. Wow, okay. You can hear the music behind me. People are warming up. I think theyre getting ready to open the doors downstairs. Thats when we will see everyone rushing in. Were going slip in a quick break right now. Joe, andrew, just want to make sure you guys are paying attention. But when we come back, we will have more. Im taking notes. Oh, i knew you could take some notes and pay attention. Guys, when we come back, we will have more from the baron Investment Conference. Including the ceo of concho resources. The stock up more than 170 over the last few years. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Welcome back to squawk box. We had a really big night for cnbc last evening. Joe, becky and i caught up on the red carpet for the start of the festivities. We were not alone. A great list of attendees joined in. I had a great conversation on the stage with martha stewart. There were a couple of highlights. Are you on tinder, too . No. Whatever happened on that . Two bad dates. Oh, martha. Im sorry. Try again. I tried. I tried. You know, im a little bit for match. Com. Yeah, i have several. And, you know, for cameras. Where . On my property. I take pictures. Theyre very good for landscaping and for and for seeing where do you have them delivered yet . No. Today i had a cup of coffee delivered by a drone in my office. You look at my dinette, but no, its just too big. Its not too big. Youre not going to be blind . No. Its on one side. Its in a way, its too small because its not a big enough screen with a big keyboard and all that. And its too big to put any place unless you build some big thing to carry it like a silly person. He just upgraded to a 6, but he wants his 5 back. He wants to go back even farther. He wants to go to the tiny one. There was only one steve jobs, but certainly barry is very visionary in a lot of ways. He went and talked about like when he went into qvc, i was like, youre joking, right . That cheesy, Home Shopping and look at, that was before the internet, but it ushered in, like he said last night, screens that arent oneway. They suddenly become two way and that was the very beginning of it and he knew. As a hollywood guy, theyre slow off the mark. For the internet and everything else. It was abc. And paramount and fox. Helped create fox. Youre right, there was a history of just being really hes just really smart. And martha is just a trip, isnt she . Can you imagine her on that, the guy that gets the hi, im on a dating site. She went on two dates, though. Right. We were trying to get this her on tender afterwards, but i dont know if that you know what . If i was i think that would be a pretty good you know, if you were on the other side. Contemporary, but say im not quite at that point, but you would think, wow, a date with martha stewart. It could be worse than that, right . I think everybody would be trying to get on that date. A heck of a great meal, everything would be presented beautifully on the table. I think it would be good. Anyway, becky, im scared of where im headed here. Im a little groggy. Lets go back to where things are more comfortable with you and ron. Weve had a couple of awkward moments already. Play some music for me or the have they . This squawk ward moment was brought to you by let me save you from yourself, joe. Oil prices, you know they are near threeyear lows. Theyve been putting pressure on oilrelated companies. Weve been watching this every morning. Our next guest is one of the largest producers in the permian basin. Thank you for being here today. Thank you. Its a pleasure weve been watching oil prices every morning with a little bit of shock and awe. Unbelievable to see things dip further than we ever thought they could this quickly. This morning, wti is somewhere around 78. As much as weve been watching the story, i imagine youve been watching it even more closely. What have you thought about this decline in oil prices . Weve seen this happen before. Reone our business, oil is going to vary between 80 and 100. Weve seen it go up to the top of that range and out the bottom of that range several times. So i think its really important to build a business thats resilient enough to prosper in environments like this. And when you look back over our history, some of our best investments, some of our best wells were drilled during the trough. So this is a challenging time, but its a time where we think we can create a lot of value. Thats an interesting point. We had harold ham on, i dont know if it was earlier this week or last week. And i was talking about how youre not at a point when youre going to see anybody capping wells, but in his perspective, you will see people stopping, putting investment in. Are you continuing to explore today with the oil prices theyre running almost 40 rigs today. So our plan for next year is to keep that level of activity, but keep a very close eye on commodity prices. Woke up and generally reinvest all their cash flow. So as oil prices go up and down, where you had july to try to take some of the risk out of that cash flow, things will start to slow down. Where do you turn a profit . Weve heard that the United S