Billionaire investor Ron Baron: If I had more money to invest, I would invest it
Published May 25, 2023, 11:20 p.m. by Naomi Charles
In today's business world, it's all about making money and one way to do that is by investing. For the average person, investing can be a daunting task. There are so many options and it's hard to know where to put your money. But for the savvy investor, there are plenty of opportunities to make a profit.
One person who knows a thing or two about investing is billionaire investor Ron Baron. Baron is the founder and CEO of Baron Capital, one of the largest and most successful investment firms in the world. He's also a regular on cnbc's "Mad money" with Jim Cramer.
In a recent interview with cnbc, Baron talked about his investment strategy and why he's bullish on the stock market. He also offered some advice for the average investor.
Here are some highlights from the interview:
On his investment philosophy:
"I'm looking for companies that I think are going to be much bigger 10 years from now than they are today. I want to own a piece of those companies."
On why he's bullish on the stock market:
"The U.S. economy is in great shape. Unemployment is low, wages are rising, and companies are making a lot of money. The stock market is just starting to reflect that."
On his advice for the average investor:
"Start small and invest in companies that you understand. And don't be afraid to hold for the long term."
Baron's advice is spot on. Investing can be a great way to make money, but you need to be smart about it. If you're not sure where to start, consult with a financial advisor. And don't forget to check out Ron Baron's latest book, "The billionaire investor's Playbook."
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GREAT PEOPLE AND PEOPLE WE TRUST
AND PEOPLE WE LIKE
TOM PRITZKER IS MY FRIEND.
HE SAYS YOU KNOW I HAVE BEEN
TRYING TO FIGURE OUT HOW YOU DO
THIS
HOW DOES THIS HAPPEN
HOW DO YOU PICK STOCKS
I FIGURED IT OUT
YOU TRY TO FIND PEOPLE WHO YOU
REALLY LIKE WHO YOU REALLY
ADMIRE AND THINK ARE GREAT AND
YOU CAN TRUST THEM
YOU INVEST AND FIND OUT A WAY TO
INVEST WITH THEM
IF YOU LIKE THE PERSON, YOU
FIGURE OUT A WAY
THAT'S WHAT YOU DO
I THINK THAT IS WHAT WE DO
WE FIND AND IT GOES BACK TO WHEN
I WAS A KID AND IN ASBURY PARK
ONE GUY OWNED THE RIDES ON THE
BOARDWALK.
PEOPLE GO TO THE BOARDWALK AND
PLAY THE CUPIE DOLLS OR UMBRELLA
FRANCHISE.
I SEE THESE THINGS AND MY WHOLE
LIFE IS THE PEOPLE WHO MY
GRANDFATHER STARTED OFF AS A
CONSTRUCTION WORKER AND THEN
OWNED A CANDY STORE.
HE JUST FIGURED OUTPUT MORE PINK
BALLS IN THERE TO BOUNCE THE
PENNY ON THE STREET.
IT IS ABOUT BEING LONG TERM
ABOUT EVERYTHING
THE PEOPLE WHO HAVE DONE THE
BEST HAVE INVESTED IN THE LONG
TERM IN BUSINESS
THAT TAKES YOU THROUGH THE
INFLATION.
ONE MORE THING
A WEEK AGO THERE WAS AN ARTICLE
IN THE TIMES INTERVIEWING SIX OR
SEVEN MONEY MANAGERS
EVERYONE SAID WE WAIT UNTIL
INFLATION PEAKS AND RATES GO
DOWN
EXCEPT ONE GUY
HE SAYS WE WILL GET THROUGH
THIS
HE SAID IN 1963, WE WERE
STOPPING THE CUBAN MISSILE
CRISIS AND STOPPING RUSSIAN
SHIPS IN THE OCEAN
WE GOT THROUGH THAT.
THEY HAD THE NATIONAL GUARD
SHOOTING KIDS ON CAMPUSES.
WE GOT THROUGH THAT.
WE HAD ASSASSINATION OF
POLITICAL LEADERS.
WE GOT THROUGH THAT.
THERE ARE ALL OF THESE THINGS
THAT HAPPEN ALL THE TIME
ON THE OTHER HAND, THIS CHAOS
WHENEVER WHEN HAD IT BEFORE, WE
COME THROUGH AND THE STOCK
MARKET IS 800.
IT IS NOW 32,000
>> ARE YOU PUTTING MORE MONEY TO
WORK RIGHT NOW BECAUSE YOU CAN
FIND MORE OPPORTUNITIES BECAUSE
PRICES HAVE COME DOWN OR IS THIS
A SITUATION WHERE YOU LITERALLY
KEEP YOUR HEAD DOWN AND IT IS
BUSINESS AS USUAL?
>> LAST NOVEMBER OR OCTOBER, YOU
COULD NOT FIND THINGS THAT WERE
EXPENSIVE.
THEY WERE CHEAP.
NOW YOU CAN'T FIND THINGS THAT
ARE EXPENSIVE.
IF I HAD MORE MONEY TO INVEST, I
WOULD INVEST IT.
I'M VESTED.
>> FULLY VESTED?
>> YEAH.
WE GET MORE MONEY IN CHUNKS.
AS SOON AS WE GET IT, WE INVEST
IT
I FIND THINGS EVERYWHERE
THAT DOESN'T MEAN THIS IS THE
BOTTOM
THAT MEANS THIS IS THE GREAT
TIME TO INVEST
YOU WILL HEAR HYATT AND VAIL
THOSE ARE COMPANIES WE INVEST.
THESE ARE COMPANIES SELLING AND
BUY IN THEIR STOCK
THEY HAVE A COUPLE OF PERCENT
YIELD AND SHRINK CAPITALIZATION.
THERE ARE BENEFITS FROM
INFLATION.
IN THE 1970s, WHEN I WAS
INVESTING IN THE BEGINNING AND A
LOT OF INFLATION AT THAT PERIOD
OF TIME, I WOULD NOT UNDERSTAND.
THE STOCK MARKET KEPT GOING
DOWN
THESE BUSINESSES IN WHICH I'M
INVESTING, ONCE THEY OWN GETS
MORE VALUABLE.
IN THE 1970s, THE STOCK MARKET
WAS GOING DOWN, BUT THE
BUSINESSES I'M INVESTING, IN THE
1
1970s, THEY ARE MAKING MONEY
BECAUSE THE COMPANIES WE'RE
INVESTING IN THEY KEPT GROWING
THROUGH IT ALL
NOW DISNEY AND McDONALD'S AND
FEDERAL EXPRESS AND NIKE KEPT
GROWING.
AND PHILANTTROPICANA.
I WOULD NOT HAVE BEEN ABLE TO
MAKE A LIVING BEING A LONG-TERM
INVESTOR IN THE '70s
SELL NIKE TO BUY HYATT
WHAT WOULD HAPPEN IS THAT I LOOK
BACK AFTER TEN YEARS OR 15
YEARS.
I SAID I'M A DISASTER.
LOOK AT THE COMPANIES THAT I
RECOMMENDED SELLING.
I COULD HAVE BEEN RICH
THEY DOUBLED O
