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Ron Baron: Peter Lynch: "If you spend more than 14 minutes a year worrying about the market, you've wasted 12 minutes"

September 04, 2005

Ron Baron is not only one of best investors, he is also one of the best writers. Reading his shareholder letters can be enjoyable. ?Peter Lynch is widely recognized as one of the most astute investors of my generation. He gave the above advice to Barron?s readers??. He also wrote about what Warren Buffett told him and he has taken to heart: ?It?s very difficult to earn a good return by investing in poor businesses that you believe are value priced, because those investments are likely depreciating, you?re in a race to sell at a fair price before they lose even more value! It?s much better to invest at fair prices in strong and growing businesses which are likely to appreciate in value.?


Rating: 2.8/5 (4 votes)


Valuefan premium member - 12 years ago
I am concerned that the high turnover of growth managers like

this one will dilute the value of tracking their holdings,

since we are on delay. It will be difficult to know if they

are already out of the position we think they are holding?

Gurufocus premium member - 12 years ago
Baron's turnover rate is actually quite low. In the last quarter his Partners fund has 36 stocks, his asset fund has 44 stocks, and his growth fund has 126 stocks. With all the 3 funds he bought only 14 stocks, and sold 8.

The reason that he was added is that he may provide more ideas for us in small cap areas. With very concertrated portfolio like Buffett or Nygren, we only get ideas in Large or Mid cap.

Valuefan premium member - 12 years ago
ok. Sounds good. I am very much

in favor of more small cap ideas.

And when you get consensus between more than 1 guru on a small cap, it would seem to mean more than on a large cap,

since the odds are against it.

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