We hope you enjoy the q2 letter from Ron Baron. Another gem from another of our fav reads.
Interesting to note Baron Capital’s preference for businesses that focus on the LT instead of daily, weekly, quarterly or annual targets and how that LT focus produces excellent results. Wonder how many individual investors speculators can say that given they lose their minds each time there’s a market selloff. (That 800 pt DJIA decline was recovered in 3 days!)
ST pricing of financial assets has NOTHING to do with fundamentals. It’s a measure of sentiment. Trump, China trade war, Fed interest rates, talking heads on TV spouting weapons-grade BS in an attempt for ratings, etc. The details change but it’s the same nonsense. It’s a lesson some are unwilling/unable to learn.
Two options:
- Invest. Have a plan. Be dispassionate. Don’t act for the sake of acting. Tune out the noise. Ignore what friends, neighbors and co-workers are doing. Control what you can. Don’t worry about the rest.
- Speculate. Guess. Be emotional and reactionary. Look at your brokerage accounts daily. Do something just to feel like you’re in control. Hang on every word of every talking head. Wait for a selloff and then sell into it. Sit on the sidelines during the recovery then buy back in when “safe.” Buy high. Sell low.
Which sounds like a winning strategy? Ask Ron Baron.