Ron Baron: You Cannot Trade the News like Soros, Stocks are Cheap

“If you just invest in the stock market, we think you’re going to double your money in 10 years and double it again in 10 years after that,” he continued. “So we’re thinking about the Dow being 30,000 in 10 years and 60,000 in 20 years.”

Ron Baron has become a billionaire the old fashioned way – the way JPMorgan and Buffett have before him – unbridled optimism about America. Running about $19.5 billion in AUM, Baron is unafraid of temporary sell-offs or even crashes in the short-term, because he’s after long-term gains, not short-term relative performance.

This week he shared his reasons for bullishness with CNBC’s Squawk Box, live from The Hamptons.

There are some great insights for investors here.

In part one, Ron explains his general outlook and the case for stocks, he also gently makes a mockery of the day-to-day financial news histrionics but they don’t seem to be offended (self-aware? oblivious?):

In part two, Ron discusses how he comes up with the themes and stock picks that he invests in – Baron Funds have an average stock holding period of 7 years and he owns around 400 names. Doug Kass emails in a challenge to him on earnings multiples in this clip below, listen to how Ron handles it:

hat tip Jeff Miller

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