Billionaire investor Ron Baron: If I had more money to invest, I would invest it — Transcript

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1. 0:00I'm Tom pritzker is my friend and he's
2. 0:02the head of Hyatt Corporation and he
3. 0:04says to me a few weeks ago he says you
4. 0:06know Ron I've been trying to figure out
5. 0:08for a long time how you do this how does
6. 0:10this happen and how do you pick stocks
7. 0:12and then he says I figured it out what
8. 0:14you do is you try to find people who you
9. 0:17really like who you really admire who
10. 0:18you think are great leaders if you like
11. 0:21Integrity you can trust them and then
12. 0:24you invest in and then you find out a
13. 0:26way to invest with them if you like the
14. 0:27person you figure out somewhere to
15. 0:29invest with them that's what you do and
16. 0:31I think about that and that is what we
17. 0:32do we try to find and it goes back to
18. 0:34when I was a kid and I watched the
19. 0:35people who are most successful in Asbury
20. 0:37Park and one guy owned the rides on the
21. 0:40boardwalk you know and say had there's a
22. 0:42platforms and people go to the boardwalk
23. 0:44and they buy the rides or they play the
24. 0:45kooky dolls or they have the umbrella
25. 0:48franchise or you know or in the suntan
26. 0:51franchise when I was selling on the
27. 0:53beach one with lifeguard you know so I
28. 0:55see these things and my whole life it's
29. 0:57the people who my grandfather you know
30. 1:00we started off as a structure work with
31. 1:01and he was a peddler then he owned a
32. 1:03candy store he didn't sell the candy
33. 1:04store when things weren't going well he
34. 1:07just figured out I'll put more pink
35. 1:08balls in there so that uh they can
36. 1:11bounce the penny on the street so it's
37. 1:13about just being long-term about
38. 1:14everything and the people who's done the
39. 1:16best that I've watched have done you
40. 1:18know just invested for the long term in
41. 1:19businesses and that takes you through
42. 1:21the inflation you go oh one more thing
43. 1:23about a week ago there was an article in
44. 1:25the New York Times over the weekend
45. 1:27interviewing six or seven money managers
46. 1:30about what they thought and everyone
47. 1:31said well we have to wait till inflation
48. 1:33Peaks and we have to wait till interest
49. 1:34rates start going down except for one
50. 1:36guy that was Lloyd blank line and he
51. 1:38says that we're going to get through
52. 1:40this he says in 1963
53. 1:42we were stopping the Cuban Missile
54. 1:44Crisis we were stopping Russian ships in
55. 1:47the mid-ocean and and they were putting
56. 1:50missiles in Cuba we got through that
57. 1:51they had National Guards shooting kids
58. 1:53on campuses we got through that so we've
59. 1:56had periodically we had assassinations
60. 1:58of political leaders we got through that
61. 2:00so there's all these things that happen
62. 2:01all the time on the other hand in
63. 2:03entropy you know it's this uh you know
64. 2:06chaos whenever we've had it before we've
65. 2:09come through and the stock market is 800
66. 2:11as we talked before in 1982 it's now 32
67. 2:14000 40 times would you are you putting
68. 2:16more money to work right now because you
69. 2:18can find more opportunities because
70. 2:20prices have come down or is this a
71. 2:22situation uh where you literally just
72. 2:25keep your head down in its business as
73. 2:27usual in uh last November that's the end
74. 2:30of October you couldn't find things that
75. 2:32were expensive that were cheap they were
76. 2:34cheap now you can't find things that are
77. 2:35expensive you can't find anything that's
78. 2:37expensive and so if I had more money to
79. 2:40invest I would invest it I'm invested
80. 2:42you're fully invested yeah and uh you
81. 2:45know we get more money but uh and and
82. 2:48chunks and so as soon as we get it we
83. 2:50invest it but uh you know I find things
84. 2:53everywhere and that doesn't mean this is
85. 2:54the bottom it just means this is a great
86. 2:56time to invest when you're talking today
87. 2:58you're going to hear uh you know Hyatt
88. 3:00and and unveil and those are companies
89. 3:02in which we invest these are companies
90. 3:04that that are selling uh you know they
91. 3:06have uh you know they buy in their stock
92. 3:09uh they have a couple of percent yield
93. 3:11that shrink their capitalization seven
94. 3:12or eight percent a year they're selling
95. 3:14at 11 or 12 times their benefits from
96. 3:17inflation in the 1970s when I was
97. 3:20investing at the beginning and there was
98. 3:22a lot of inflation at that period of
99. 3:23time I couldn't understand the stock
100. 3:25market kept going down I couldn't
101. 3:26understand it said these businesses in
102. 3:27which I'm investing what they own keeps
103. 3:30getting more valuable and every day the
104. 3:32stocks go down why is that and of course
105. 3:34it ended but in the 1970s even though
106. 3:37the stock market was going down the
107. 3:39businesses in which we're investing so
108. 3:40I'm a stock broker I'm selling research
109. 3:42that I'm doing to hedge funds and mutual
110. 3:44funds and in the 1970s the ideas that
111. 3:46I'm selling built they're making money
112. 3:49because the companies that we're
113. 3:50investing in they kept growing through
114. 3:52it all you know it was Disney and
115. 3:54McDonald's and Federal Express and Nike
116. 3:56and Mattel and Hyatt so they were kept
117. 3:58growing in Tropicana and uh and so my
118. 4:01clients I wouldn't have been able to
119. 4:03make a living if I you know if I was
120. 4:06just being a long-term investor in the
121. 4:081970s I needed commissions and so I
122. 4:10would get people to buy one stock and
123. 4:12then they'd double a triple and then
124. 4:14they would sell it and then to buy my
125. 4:16next idea so sell sell Nike to buy Hyatt
126. 4:18you know and what would happen is that I
127. 4:21look back after 10 years and 15 years
128. 4:23and said man I'm a disaster look at all
129. 4:25those companies that I recommended
130. 4:27selling and look what happened I could
131. 4:28have been Rich they were up you know I
132. 4:30recommend they doubled or tripled or you
133. 4:32know and and they're up 30 times 20
134. 4:34times 50 times so that's what happened
135. 4:36that's how it became a long-term
136. 4:37investor