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# Lessons from Ron Baron
- URL: https://www.antoinebuteau.com/lessons-from-ron-baron/
- Published: 2025-11-19T21:17:47.000Z
- Updated: 2026-09-05T03:19:30.000Z
- Description: Ron Baron, founder of Baron Capital, practices long-term, growth-oriented investing by finding well-managed businesses with durable competitive advantages. His discipline centers on patient ownership: choose companies carefully, then hold them long enough for their strengths to compound.
- Author: Antoine Buteau
- Tags: Profile, Investing, Hedge Funds & Investing Profiles

Billionaire investor Ron Baron, founder of Baron Capital, is renowned for his long-term, growth-oriented investment philosophy. His approach, which has led to significant returns for his clients, centers on identifying well-managed, competitively advantaged businesses and holding them for the long haul.

![Visual summary of operating lessons from Ron Baron.](https://www.antoinebuteau.com/content/images/2026/07/image-14-optimized-1.webp)

## On Long-Term Investing

1. **"We are not renters of stocks, we are owners of businesses."** A core tenet of his philosophy, emphasizing a long-term ownership mentality.
2. **"When we buy a stock, we are not looking to sell it. We are looking to hold it forever."** This highlights his exceptionally long investment horizon.
3. **"The average holding period for our funds is about 13-14 years, while the average for most mutual funds is nine months to a year."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** This statistic starkly contrasts his approach with the short-term focus of many in the market.
4. **"Successful investing is not just about finding the right company but also holding on to it as it grows."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]**This underscores the importance of patience in wealth creation.
5. **"To really outperform and hold a company for so long, we have to invest in companies that have a long-term bright future that we can hold for the long-run."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** This speaks to the necessity of identifying businesses with durable growth prospects.
6. **"We invest for the long term and, over time, become quite knowledgeable about the businesses that we invest in."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** Deep understanding of investments is a prerequisite for long-term conviction.
7. **"If they are investing today to make money tomorrow, next month, or even next year—that's risky."\[**[**2**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFayBUpuPwpSDZUPMe%5Fe3yq-PUIKrnN%5FnGJY2UcNi6aJQWv6poWNVxZvgEPaYawNPaxueUFMMXsme6gdkoQYWZhCAMUl3ous0yC5jf%5FItazbsKi2AcYNZaSb%5FLVpxE4jCEYCg8G2hXof-7If-HJUjnQnc5-anQ%5F5bEkJrpCEB4bsav%5FBd-fKQ7%5FQPWPPlO%5F3I5On1u2pN2F3YjKgMzm4%5FjcawMQV-NPnU2P2Al5KMZLeGf8Xj7QIQ%3D%3D&ref=antoinebuteau.com)**\]**Baron's definition of risk is tied to a short-term mindset.
8. **"The stock market and the economy basically double every 10 or 12 years."\[**[**3**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHnNWhZAp0pTa%5FhFgTk6YreM6fkfEtlAPhH%5FymArGpB6GG-9uOoqU1pK6c3VJpaw7prPTAzYDISTX-vcYgokDLoUlHzR8s1WQ8xGib47IYh%5FADtyang9BzKp6z78EEYDcPFGCda9g%3D%3D&ref=antoinebuteau.com)**\]** A reflection of his optimistic, long-term view of economic progress.
9. **"I tell them if you sell, I can almost promise you that you will never buy it back again."\[**[**4**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFuIq%5FNPwMg8MWducsREyDRv%5FgV%5FnHqVx0%5FcraoBQQfGGnt%5FjxUzyGXBhDulA2al-h5whbMfLJmeu8Cr0TbIaVnrRCRLau%5F-GGvmpXAjEe7MxSxh-4ABqjTKCkZoMrEQTM%5F-807DEJGkG1gCJCasv7RY2ryBPqP%5FVvX44DyMcgsKURJpnM2zK4xu3NBMOJ9BjVrPDegJet3%5FRLZU4w5Sg%3D%3D&ref=antoinebuteau.com)**\]** A warning against market timing and the emotional toll of selling winning investments.
10. **"The goal of his company was to 'give middle-class people…a chance to grow their savings.'"\[**[**5**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHFKsIM2j7KMmJEar7sIJQ2b4lZL6UXxCbIarpLj9xH9ohA2o%5F4rPsZHJu02sTLQ964rm57O3jtQTSLlyXFSXB9Ki3vhnMCJ100kqabdKV7fJnutieZTfvrrzTC9xG7jOQIPWRAMNOGCH3j4uJyMSw0BSJByV9siW6d&ref=antoinebuteau.com)**\]** This reveals the foundational mission behind his long-term investment approach.

## On Identifying Great Companies

1. **"What turned out to be a better idea was investing in great businesses with growth potential, great people running them and a competitive advantage."\[**[**2**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFayBUpuPwpSDZUPMe%5Fe3yq-PUIKrnN%5FnGJY2UcNi6aJQWv6poWNVxZvgEPaYawNPaxueUFMMXsme6gdkoQYWZhCAMUl3ous0yC5jf%5FItazbsKi2AcYNZaSb%5FLVpxE4jCEYCg8G2hXof-7If-HJUjnQnc5-anQ%5F5bEkJrpCEB4bsav%5FBd-fKQ7%5FQPWPPlO%5F3I5On1u2pN2F3YjKgMzm4%5FjcawMQV-NPnU2P2Al5KMZLeGf8Xj7QIQ%3D%3D&ref=antoinebuteau.com)**\]** This quote succinctly summarizes his three core investment pillars.
2. **"We focus on companies that are smaller."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** Smaller companies often have a longer runway for growth.
3. **"Baron only invests in growth stocks, viewing them as 'the best way to make money over time.'"\[**[**5**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHFKsIM2j7KMmJEar7sIJQ2b4lZL6UXxCbIarpLj9xH9ohA2o%5F4rPsZHJu02sTLQ964rm57O3jtQTSLlyXFSXB9Ki3vhnMCJ100kqabdKV7fJnutieZTfvrrzTC9xG7jOQIPWRAMNOGCH3j4uJyMSw0BSJByV9siW6d&ref=antoinebuteau.com)**\]** A clear statement on his focus on growth over other investment styles.
4. **"I focused on sales growth as opposed to earnings per share growth."\[**[**2**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFayBUpuPwpSDZUPMe%5Fe3yq-PUIKrnN%5FnGJY2UcNi6aJQWv6poWNVxZvgEPaYawNPaxueUFMMXsme6gdkoQYWZhCAMUl3ous0yC5jf%5FItazbsKi2AcYNZaSb%5FLVpxE4jCEYCg8G2hXof-7If-HJUjnQnc5-anQ%5F5bEkJrpCEB4bsav%5FBd-fKQ7%5FQPWPPlO%5F3I5On1u2pN2F3YjKgMzm4%5FjcawMQV-NPnU2P2Al5KMZLeGf8Xj7QIQ%3D%3D&ref=antoinebuteau.com)**\]** Top-line growth is a key indicator of a company's potential.
5. **"It is always about learning how businesses make money."\[**[**2**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFayBUpuPwpSDZUPMe%5Fe3yq-PUIKrnN%5FnGJY2UcNi6aJQWv6poWNVxZvgEPaYawNPaxueUFMMXsme6gdkoQYWZhCAMUl3ous0yC5jf%5FItazbsKi2AcYNZaSb%5FLVpxE4jCEYCg8G2hXof-7If-HJUjnQnc5-anQ%5F5bEkJrpCEB4bsav%5FBd-fKQ7%5FQPWPPlO%5F3I5On1u2pN2F3YjKgMzm4%5FjcawMQV-NPnU2P2Al5KMZLeGf8Xj7QIQ%3D%3D&ref=antoinebuteau.com)**\]** A fundamental aspect of his research process.
6. **"He focuses on picking out small and mid-size companies with growth potential and competitive advantages."\[**[**6**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQF66Zj7Pt7N2GtcQCGumwX0BfrydnIKt5cr1x8UvwyOWPxMYKLCaHOsqY0ZRZhQ7772Fo9BVuNozZ3Mktp5KWtr1IFTPsAcSppPl0BsrUjepT2RVt3vd1YjMBAbeGWHVxkd4sfDtnL0koVWwBJPrPe7z2BwTER9RAj1hkluDA%3D%3D&ref=antoinebuteau.com)**\]** A description of his target investment universe.
7. **"We look for companies that are competitively advantaged for the long term."\[**[**7**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHgYoht5dMALQeFNGwVZtKmc7jcro7nro4qktHVxmiNdRt%5FPbvYQu7ZgGXSmzgwrziRhqO6%5F02o4Fgs4NQ1jukpVKou5TN9RoZmZDM6nI9mhEYZS-7g1DIlgGeKuqtqhOZK2jAOmQ%3D%3D&ref=antoinebuteau.com)**\]** Durable competitive advantages are crucial for sustained growth.
8. **"We believe Block's businesses are resilient, and greater management focus on cost discipline should drive further margin expansion."\[**[**8**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHFzcw4K-zRrAlIa03aFAP44QkZnfjT%5FOtDuq506kagWnqjtx6csl2ZZH3XdcM1xnqPROzY5Rhp-PE0VJwitw-1cHjaOGbYt252HpdlOQZWriYB0ZbAuXaq9SpXBHfsW%5FQujw8RPWxtvuBgTDC3s5bZhwigherJ-kNnwdinxqLnJYYbu9PJWOFIJQyIuoJKb9sa0MdEuosF4uPN-rMnxP4%3D&ref=antoinebuteau.com)**\]** An example of the specific, forward-looking analysis his firm conducts.
9. **"We continue to own the stock due to Block's long runway for growth, durable competitive advantages, and track record of innovation."\[**[**8**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHFzcw4K-zRrAlIa03aFAP44QkZnfjT%5FOtDuq506kagWnqjtx6csl2ZZH3XdcM1xnqPROzY5Rhp-PE0VJwitw-1cHjaOGbYt252HpdlOQZWriYB0ZbAuXaq9SpXBHfsW%5FQujw8RPWxtvuBgTDC3s5bZhwigherJ-kNnwdinxqLnJYYbu9PJWOFIJQyIuoJKb9sa0MdEuosF4uPN-rMnxP4%3D&ref=antoinebuteau.com)**\]** This reiterates the key criteria for their investments.
10. **"Gartner's proprietary insight extends to corporate technological roadmaps, enabling the company to assess future trends."\[**[**9**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGoOzNE7qvGkDTf-hSXk2N15zXWuz3vMPa6UyzwU5Rv3e13TPlz8wZ-%5FDez4NlQK4xhWRzfcqelRRkm4FqitByCv6xlkxd5gJF7I6z8Bw%5FXUbRILEkxhV3m2sFxKvgBIFEv3akQkMK%5FcvE3fM%5Flt6lhz97WM0102dlxoygTMw-AdAkunb5uXfXb%5F777yC4P&ref=antoinebuteau.com)**\]** Highlighting the importance of a company's unique assets and market position.

## On People and Management

1. **"You have to love what you do, really work hard and guard your reputation above everything else."\[**[**2**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFayBUpuPwpSDZUPMe%5Fe3yq-PUIKrnN%5FnGJY2UcNi6aJQWv6poWNVxZvgEPaYawNPaxueUFMMXsme6gdkoQYWZhCAMUl3ous0yC5jf%5FItazbsKi2AcYNZaSb%5FLVpxE4jCEYCg8G2hXof-7If-HJUjnQnc5-anQ%5F5bEkJrpCEB4bsav%5FBd-fKQ7%5FQPWPPlO%5F3I5On1u2pN2F3YjKgMzm4%5FjcawMQV-NPnU2P2Al5KMZLeGf8Xj7QIQ%3D%3D&ref=antoinebuteau.com)**\]**Advice that applies to both investors and the leaders of the companies he invests in.
2. **"Investing in great people—that's what happened with Musk after the second time I met him."\[**[**2**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFayBUpuPwpSDZUPMe%5Fe3yq-PUIKrnN%5FnGJY2UcNi6aJQWv6poWNVxZvgEPaYawNPaxueUFMMXsme6gdkoQYWZhCAMUl3ous0yC5jf%5FItazbsKi2AcYNZaSb%5FLVpxE4jCEYCg8G2hXof-7If-HJUjnQnc5-anQ%5F5bEkJrpCEB4bsav%5FBd-fKQ7%5FQPWPPlO%5F3I5On1u2pN2F3YjKgMzm4%5FjcawMQV-NPnU2P2Al5KMZLeGf8Xj7QIQ%3D%3D&ref=antoinebuteau.com)**\]** A testament to the central role of leadership in his investment decisions.
3. **"Understanding character is an essential baron competitive advantage."\[**[**7**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHgYoht5dMALQeFNGwVZtKmc7jcro7nro4qktHVxmiNdRt%5FPbvYQu7ZgGXSmzgwrziRhqO6%5F02o4Fgs4NQ1jukpVKou5TN9RoZmZDM6nI9mhEYZS-7g1DIlgGeKuqtqhOZK2jAOmQ%3D%3D&ref=antoinebuteau.com)**\]** His ability to judge management is a key part of his firm's edge.
4. **"It's what algorithms can't do."\[**[**7**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHgYoht5dMALQeFNGwVZtKmc7jcro7nro4qktHVxmiNdRt%5FPbvYQu7ZgGXSmzgwrziRhqO6%5F02o4Fgs4NQ1jukpVKou5TN9RoZmZDM6nI9mhEYZS-7g1DIlgGeKuqtqhOZK2jAOmQ%3D%3D&ref=antoinebuteau.com)**\]** Emphasizing the human element of investment analysis.
5. **"Without his \[Elon Musk's\] relentless drive and uncompromising standards, there would be no Tesla.”\[**[**10**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHa8G1fSYqgkPD748pyDfFAYVnV342xti6rEG0HZoG%5F8DdMm7xaLuGL6qzti9%5FFhnwZ0JjQ0ahyH%5Fi91EOtt5fnqUBotHqkFARDh8JwGX11GsiftRB26n%5FTmnJrhkE7T1SFY%5FSO-zNEUcNfLpiPG6rxSwHCe9stsTumpOSapQndMi1Kr1Bq6yY8eqeadiecCfm5qYfOg2OO3zCp&ref=antoinebuteau.com)**\]** A specific example of the transformative power of a visionary leader.
6. **"He's \[Elon Musk\] not doing this to save up for a beach house. He cares about how he wants to be remembered, his legacy.”\[**[**10**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHa8G1fSYqgkPD748pyDfFAYVnV342xti6rEG0HZoG%5F8DdMm7xaLuGL6qzti9%5FFhnwZ0JjQ0ahyH%5Fi91EOtt5fnqUBotHqkFARDh8JwGX11GsiftRB26n%5FTmnJrhkE7T1SFY%5FSO-zNEUcNfLpiPG6rxSwHCe9stsTumpOSapQndMi1Kr1Bq6yY8eqeadiecCfm5qYfOg2OO3zCp&ref=antoinebuteau.com)**\]** Looking beyond financial incentives to understand a leader's motivation.

## On Market Volatility and Mistakes

1. **"We look at whether we've made a mistake — and it's never about the price."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** A mistake is a flaw in the business thesis, not a decline in the stock price.
2. **"If we've made a mistake in terms of a business plan not working out as expected, we sell."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** A disciplined approach to cutting losses when the fundamentals deteriorate.
3. **"Just get out as fast as you can when you make a mistake and, hopefully, not too often."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** Decisiveness is key when an investment thesis is broken.
4. **"This uncertainty has actually played to the strengths of our business."\[**[**4**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFuIq%5FNPwMg8MWducsREyDRv%5FgV%5FnHqVx0%5FcraoBQQfGGnt%5FjxUzyGXBhDulA2al-h5whbMfLJmeu8Cr0TbIaVnrRCRLau%5F-GGvmpXAjEe7MxSxh-4ABqjTKCkZoMrEQTM%5F-807DEJGkG1gCJCasv7RY2ryBPqP%5FVvX44DyMcgsKURJpnM2zK4xu3NBMOJ9BjVrPDegJet3%5FRLZU4w5Sg%3D%3D&ref=antoinebuteau.com)**\]** Viewing market downturns as opportunities.
5. **"We are always investing at times when other people don't want to invest, at times when the earnings often are not there.”\[**[**4**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFuIq%5FNPwMg8MWducsREyDRv%5FgV%5FnHqVx0%5FcraoBQQfGGnt%5FjxUzyGXBhDulA2al-h5whbMfLJmeu8Cr0TbIaVnrRCRLau%5F-GGvmpXAjEe7MxSxh-4ABqjTKCkZoMrEQTM%5F-807DEJGkG1gCJCasv7RY2ryBPqP%5FVvX44DyMcgsKURJpnM2zK4xu3NBMOJ9BjVrPDegJet3%5FRLZU4w5Sg%3D%3D&ref=antoinebuteau.com)**\]** A contrarian approach that capitalizes on fear.
6. **"The time to sell is when the fundamentals of the business change, when the competitive advantage that business has is no longer the case, then you can sell."\[**[**4**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFuIq%5FNPwMg8MWducsREyDRv%5FgV%5FnHqVx0%5FcraoBQQfGGnt%5FjxUzyGXBhDulA2al-h5whbMfLJmeu8Cr0TbIaVnrRCRLau%5F-GGvmpXAjEe7MxSxh-4ABqjTKCkZoMrEQTM%5F-807DEJGkG1gCJCasv7RY2ryBPqP%5FVvX44DyMcgsKURJpnM2zK4xu3NBMOJ9BjVrPDegJet3%5FRLZU4w5Sg%3D%3D&ref=antoinebuteau.com)**\]** A clear framework for selling decisions.

## On Investment Philosophy and Process

1. **"Ron is a bottom-up investor. That means that he does not think about macro, he does not think about the interest rates."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** His focus is on individual companies, not broad economic forecasts.
2. **"We don't do that \[macro investing\]."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** A direct rejection of a top-down investment approach.
3. **"The biggest risk for investors right now is that they think because they're smart, they can predict politics, the stock market or oil prices, for example."\[**[**2**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFayBUpuPwpSDZUPMe%5Fe3yq-PUIKrnN%5FnGJY2UcNi6aJQWv6poWNVxZvgEPaYawNPaxueUFMMXsme6gdkoQYWZhCAMUl3ous0yC5jf%5FItazbsKi2AcYNZaSb%5FLVpxE4jCEYCg8G2hXof-7If-HJUjnQnc5-anQ%5F5bEkJrpCEB4bsav%5FBd-fKQ7%5FQPWPPlO%5F3I5On1u2pN2F3YjKgMzm4%5FjcawMQV-NPnU2P2Al5KMZLeGf8Xj7QIQ%3D%3D&ref=antoinebuteau.com)**\]** A warning against the futility of market timing and macro predictions.
4. **"Baron believes the biggest mistake investors generally make is to avoid paying a small premium for a strong growing business.”\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** An argument against dogmatic value investing that overlooks quality and growth.
5. **"\[I\]nvest in companies, not stocks."\[**[**5**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHFKsIM2j7KMmJEar7sIJQ2b4lZL6UXxCbIarpLj9xH9ohA2o%5F4rPsZHJu02sTLQ964rm57O3jtQTSLlyXFSXB9Ki3vhnMCJ100kqabdKV7fJnutieZTfvrrzTC9xG7jOQIPWRAMNOGCH3j4uJyMSw0BSJByV9siW6d&ref=antoinebuteau.com)**\]** This emphasizes the importance of focusing on the underlying business.
6. **"The best way to invest, according to Baron, is to own the business."\[**[**6**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQF66Zj7Pt7N2GtcQCGumwX0BfrydnIKt5cr1x8UvwyOWPxMYKLCaHOsqY0ZRZhQ7772Fo9BVuNozZ3Mktp5KWtr1IFTPsAcSppPl0BsrUjepT2RVt3vd1YjMBAbeGWHVxkd4sfDtnL0koVWwBJPrPe7z2BwTER9RAj1hkluDA%3D%3D&ref=antoinebuteau.com)**\]** Reinforcing the ownership mindset.
7. **Our strategy is to invest in businesses that grow faster than our economy."\[**[**7**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHgYoht5dMALQeFNGwVZtKmc7jcro7nro4qktHVxmiNdRt%5FPbvYQu7ZgGXSmzgwrziRhqO6%5F02o4Fgs4NQ1jukpVKou5TN9RoZmZDM6nI9mhEYZS-7g1DIlgGeKuqtqhOZK2jAOmQ%3D%3D&ref=antoinebuteau.com)**\]** A clear goal for their investment selection.
8. **"We are always talking with companies, studying the businesses and making sure that our assessment is going in the right direction."\[**[**1**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)**\]** Continuous research and due diligence are paramount.

## On Wealth Creation and Mindset

1. **"I love what I do and so I still want to keep doing it forever."\[**[**11**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFir%5FnmdzqKs4tp0YwyGEHk7G34FPGh8lajo-pbsUcMW39xAwfMVT09nHoN06JIJSlE-r53zqg2xwr4CMoLi7ajFIIdDKbdtkev4MDkk-l5X1v7NOat6qtwKo934hh%5FjXhNlcMJEQ%3D%3D&ref=antoinebuteau.com)**\]** Passion is a key ingredient for long-term success.
2. **"Exceptional takes time."\[**[**11**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFir%5FnmdzqKs4tp0YwyGEHk7G34FPGh8lajo-pbsUcMW39xAwfMVT09nHoN06JIJSlE-r53zqg2xwr4CMoLi7ajFIIdDKbdtkev4MDkk-l5X1v7NOat6qtwKo934hh%5FjXhNlcMJEQ%3D%3D&ref=antoinebuteau.com)**\]** A simple yet profound reminder of the need for patience.
3. **"Question everything."\[**[**11**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFir%5FnmdzqKs4tp0YwyGEHk7G34FPGh8lajo-pbsUcMW39xAwfMVT09nHoN06JIJSlE-r53zqg2xwr4CMoLi7ajFIIdDKbdtkev4MDkk-l5X1v7NOat6qtwKo934hh%5FjXhNlcMJEQ%3D%3D&ref=antoinebuteau.com)**\]** A call for independent and critical thinking.
4. **"Inflation just keeps going at four or five% a year."\[**[**11**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFir%5FnmdzqKs4tp0YwyGEHk7G34FPGh8lajo-pbsUcMW39xAwfMVT09nHoN06JIJSlE-r53zqg2xwr4CMoLi7ajFIIdDKbdtkev4MDkk-l5X1v7NOat6qtwKo934hh%5FjXhNlcMJEQ%3D%3D&ref=antoinebuteau.com)**\]** Recognizing the eroding power of inflation is a key motivator for investing in growth assets.
5. **"The value of your money falls in half every 15 years."\[**[**3**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHnNWhZAp0pTa%5FhFgTk6YreM6fkfEtlAPhH%5FymArGpB6GG-9uOoqU1pK6c3VJpaw7prPTAzYDISTX-vcYgokDLoUlHzR8s1WQ8xGib47IYh%5FADtyang9BzKp6z78EEYDcPFGCda9g%3D%3D&ref=antoinebuteau.com)**\]** A stark illustration of the impact of inflation.
6. **"Own things."\[**[**11**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFir%5FnmdzqKs4tp0YwyGEHk7G34FPGh8lajo-pbsUcMW39xAwfMVT09nHoN06JIJSlE-r53zqg2xwr4CMoLi7ajFIIdDKbdtkev4MDkk-l5X1v7NOat6qtwKo934hh%5FjXhNlcMJEQ%3D%3D&ref=antoinebuteau.com)**\]** A straightforward directive to invest in assets rather than holding cash.
7. **"Our goal is to double your money every five or six years."\[**[**7**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHgYoht5dMALQeFNGwVZtKmc7jcro7nro4qktHVxmiNdRt%5FPbvYQu7ZgGXSmzgwrziRhqO6%5F02o4Fgs4NQ1jukpVKou5TN9RoZmZDM6nI9mhEYZS-7g1DIlgGeKuqtqhOZK2jAOmQ%3D%3D&ref=antoinebuteau.com)**\]** A specific performance target for his funds.
8. **"For young people who don't have that kind of cash lying around, he provided a backup plan: have your parents or grandparents invest for you."\[**[**12**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQEGlY22gXm2gbfBBTd-%5F5-h-RrPDW4dQTr-uRJ9SVzcfnDrCOPqpYi4KDdakUDbkWlUu8pnx1zEz0m1M9RwGsv9pztuWM1IIlgcb0LzEgPXnzLcejvhUndoyp7c25ydbVBt--nLaZtjz4n24EkjQDmDK8xxM82dW-uRwJorZB6Oa1hMPTVR85%5F88n5DjRiirPTHdmRFrm-0tiNXZi1MAYMN8Akbb8RUgCa9HsmOAolrcgs%3D&ref=antoinebuteau.com)**\]** Practical advice for starting to invest early.
9. **"$5,000 invested per year for three decades would ultimately grow into more than $800,000, he said."\[**[**12**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQEGlY22gXm2gbfBBTd-%5F5-h-RrPDW4dQTr-uRJ9SVzcfnDrCOPqpYi4KDdakUDbkWlUu8pnx1zEz0m1M9RwGsv9pztuWM1IIlgcb0LzEgPXnzLcejvhUndoyp7c25ydbVBt--nLaZtjz4n24EkjQDmDK8xxM82dW-uRwJorZB6Oa1hMPTVR85%5F88n5DjRiirPTHdmRFrm-0tiNXZi1MAYMN8Akbb8RUgCa9HsmOAolrcgs%3D&ref=antoinebuteau.com)**\]** An illustration of the power of consistent, long-term compounding.
10. **"I want to be a trillion-dollar firm.”\[**[**13**](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFqlOGpb4Tfhqqet7KSkXrnnUghIiJVYVgggtIbYCd5zscpzTpbhAJ3WxM00eCYOrxuaD6Q4WDZ9iGXsrW6D6DUEPK2qd0%5FwZMEdjtBbT7KZD4E74kYHjpwmtDX8RscIcZNmtB9g7qrf%5Fr%5Fecj314%5FdV17DPy5NFz13bkQT9wPq14sGTUVYn7jzMDXUNAKgSc%5FqKNJ9g0yc3wdm5b5P7Nrr2FD2GD8WrDRQxrBd6A%3D%3D&ref=antoinebuteau.com)**\]** A reflection of his ambitious and forward-looking mindset, even after decades of success.

Sources

1. [re-thinkwealth.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGcvIV-q2s9Cz56C72YidDuP4N9c197FG8N7xhbsAn074BU3SnnfGQz4klg6XGunUx0dtaivDxNtcQv6uXKBnjg4duaN96YyhZ6vlqNKHqlZgDzIl%5FugtOD56o8GOwKJU5hfplApP4iNXi1DjG%5FFxfmhlhM2uoWlx7xHHyuqcgM4tQI9WJV4ZK1-y8%3D&ref=antoinebuteau.com)
2. [forbes.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFayBUpuPwpSDZUPMe%5Fe3yq-PUIKrnN%5FnGJY2UcNi6aJQWv6poWNVxZvgEPaYawNPaxueUFMMXsme6gdkoQYWZhCAMUl3ous0yC5jf%5FItazbsKi2AcYNZaSb%5FLVpxE4jCEYCg8G2hXof-7If-HJUjnQnc5-anQ%5F5bEkJrpCEB4bsav%5FBd-fKQ7%5FQPWPPlO%5F3I5On1u2pN2F3YjKgMzm4%5FjcawMQV-NPnU2P2Al5KMZLeGf8Xj7QIQ%3D%3D&ref=antoinebuteau.com)
3. [youtube.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHnNWhZAp0pTa%5FhFgTk6YreM6fkfEtlAPhH%5FymArGpB6GG-9uOoqU1pK6c3VJpaw7prPTAzYDISTX-vcYgokDLoUlHzR8s1WQ8xGib47IYh%5FADtyang9BzKp6z78EEYDcPFGCda9g%3D%3D&ref=antoinebuteau.com)
4. [forbes.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFuIq%5FNPwMg8MWducsREyDRv%5FgV%5FnHqVx0%5FcraoBQQfGGnt%5FjxUzyGXBhDulA2al-h5whbMfLJmeu8Cr0TbIaVnrRCRLau%5F-GGvmpXAjEe7MxSxh-4ABqjTKCkZoMrEQTM%5F-807DEJGkG1gCJCasv7RY2ryBPqP%5FVvX44DyMcgsKURJpnM2zK4xu3NBMOJ9BjVrPDegJet3%5FRLZU4w5Sg%3D%3D&ref=antoinebuteau.com)
5. [validea.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHFKsIM2j7KMmJEar7sIJQ2b4lZL6UXxCbIarpLj9xH9ohA2o%5F4rPsZHJu02sTLQ964rm57O3jtQTSLlyXFSXB9Ki3vhnMCJ100kqabdKV7fJnutieZTfvrrzTC9xG7jOQIPWRAMNOGCH3j4uJyMSw0BSJByV9siW6d&ref=antoinebuteau.com)
6. [hedgefundalpha.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQF66Zj7Pt7N2GtcQCGumwX0BfrydnIKt5cr1x8UvwyOWPxMYKLCaHOsqY0ZRZhQ7772Fo9BVuNozZ3Mktp5KWtr1IFTPsAcSppPl0BsrUjepT2RVt3vd1YjMBAbeGWHVxkd4sfDtnL0koVWwBJPrPe7z2BwTER9RAj1hkluDA%3D%3D&ref=antoinebuteau.com)
7. [youtube.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHgYoht5dMALQeFNGwVZtKmc7jcro7nro4qktHVxmiNdRt%5FPbvYQu7ZgGXSmzgwrziRhqO6%5F02o4Fgs4NQ1jukpVKou5TN9RoZmZDM6nI9mhEYZS-7g1DIlgGeKuqtqhOZK2jAOmQ%3D%3D&ref=antoinebuteau.com)
8. [insidermonkey.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHFzcw4K-zRrAlIa03aFAP44QkZnfjT%5FOtDuq506kagWnqjtx6csl2ZZH3XdcM1xnqPROzY5Rhp-PE0VJwitw-1cHjaOGbYt252HpdlOQZWriYB0ZbAuXaq9SpXBHfsW%5FQujw8RPWxtvuBgTDC3s5bZhwigherJ-kNnwdinxqLnJYYbu9PJWOFIJQyIuoJKb9sa0MdEuosF4uPN-rMnxP4%3D&ref=antoinebuteau.com)
9. [seekingalpha.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQGoOzNE7qvGkDTf-hSXk2N15zXWuz3vMPa6UyzwU5Rv3e13TPlz8wZ-%5FDez4NlQK4xhWRzfcqelRRkm4FqitByCv6xlkxd5gJF7I6z8Bw%5FXUbRILEkxhV3m2sFxKvgBIFEv3akQkMK%5FcvE3fM%5Flt6lhz97WM0102dlxoygTMw-AdAkunb5uXfXb%5F777yC4P&ref=antoinebuteau.com)
10. [nasdaq.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQHa8G1fSYqgkPD748pyDfFAYVnV342xti6rEG0HZoG%5F8DdMm7xaLuGL6qzti9%5FFhnwZ0JjQ0ahyH%5Fi91EOtt5fnqUBotHqkFARDh8JwGX11GsiftRB26n%5FTmnJrhkE7T1SFY%5FSO-zNEUcNfLpiPG6rxSwHCe9stsTumpOSapQndMi1Kr1Bq6yY8eqeadiecCfm5qYfOg2OO3zCp&ref=antoinebuteau.com)
11. [youtube.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFir%5FnmdzqKs4tp0YwyGEHk7G34FPGh8lajo-pbsUcMW39xAwfMVT09nHoN06JIJSlE-r53zqg2xwr4CMoLi7ajFIIdDKbdtkev4MDkk-l5X1v7NOat6qtwKo934hh%5FjXhNlcMJEQ%3D%3D&ref=antoinebuteau.com)
12. [forbes.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQEGlY22gXm2gbfBBTd-%5F5-h-RrPDW4dQTr-uRJ9SVzcfnDrCOPqpYi4KDdakUDbkWlUu8pnx1zEz0m1M9RwGsv9pztuWM1IIlgcb0LzEgPXnzLcejvhUndoyp7c25ydbVBt--nLaZtjz4n24EkjQDmDK8xxM82dW-uRwJorZB6Oa1hMPTVR85%5F88n5DjRiirPTHdmRFrm-0tiNXZi1MAYMN8Akbb8RUgCa9HsmOAolrcgs%3D&ref=antoinebuteau.com)
13. [forbes.com](https://www.google.com/url?sa=E&q=https%3A%2F%2Fvertexaisearch.cloud.google.com%2Fgrounding-api-redirect%2FAUZIYQFqlOGpb4Tfhqqet7KSkXrnnUghIiJVYVgggtIbYCd5zscpzTpbhAJ3WxM00eCYOrxuaD6Q4WDZ9iGXsrW6D6DUEPK2qd0%5FwZMEdjtBbT7KZD4E74kYHjpwmtDX8RscIcZNmtB9g7qrf%5Fr%5Fecj314%5FdV17DPy5NFz13bkQT9wPq14sGTUVYn7jzMDXUNAKgSc%5FqKNJ9g0yc3wdm5b5P7Nrr2FD2GD8WrDRQxrBd6A%3D%3D&ref=antoinebuteau.com)