During the past several months, investors and stock traders alike postulated that high energy prices would penalize consumer businesses? profits and share prices. This is because rising oil prices are equivalent to a consumer tax increase. As a result, share prices of businesses whose profits could be negatively impacted by weaker consumer spending fell significantly.? Wrote Ron Baron in his letter to shareholders, he believes that over the longer term, consumers will adapt and use less fossil fuels and consumers? discretionary. As a result he ?added to those investments during the last two quarters as they fell in price.? Now ?casino resorts, retail, hotels and restaurants now represent more than 20% of Baron Funds? investment portfolios, about three times the size of our strong performing, long term energy investments like natural gas business XTO Energy, oil company Encore Acquisition, energy boat company Seacor and refiner Premcor/Valero.