Ron Baron, CEO of Baron Capital which manages nearly $13B, strikes an optimistic note, telling Barron’s magazine this is the most attractive time to be an investor in his lifetime:
Stocks are cheap. They are down more than 40% from their peak in October of 2007, and that is in line with their profit decline. But stocks are now selling for less than their replacement cost — that is, what it costs to build the businesses or build the buildings. That’s very important because until profits go up and prices go up for the services of existing businesses, you aren’t going to get more competition.
Ron Baron is bullish on Wynn (NASDAQ: Wynn) because its debt load seems manageable. Trades for a low multiple on trough earnings. Well managed. (Chart looks good, too!)