Ron Baron

“this is the most attractive time to be an investor in my lifetime” Ron Baron said in the Barron's interview, of May 4 2009. Ron Baron, who founded Baron Capital Group in 1982 oversees nearly $13 billion and has a valuation-conscious strategy. Baron also said, in Barron's, “Stocks are cheap, and selling for less than their replacement cost.”

Answer from just above: They are all about the same. CNR 17.9% per year from 1998 to 2008 (.17 to .92); Power Corp 17.6% (.22 to 1.11); Metro 17.5% ( ten cents to fifty cents); BNS at 16.9% a year over the decade (.40 to 1.92). The highest in our list was IGM Financial at 20.6% per year, the lowest 1.6% for TransCanada because of their dividend reduction in 2000 (from $1.12 to .80, as I recall…the dividend is now $1.52 a year…up 5.6% in 2009). I'll list all these stocks and their ten year data in my next report. I'm working on price gains over the period too. (Average price growth of my list was 5.8% with Metro the highest at 14.9% per year, and BCE the worst at -8.2%. (the others mentioned in the question: CNR was 12.@, BNS at 7.1% a year and Power at 4.2%) It certainly was not a lost decade for the holders of dividend growth common stock. And, as the dividends are holding as I write this in mid-May 2009, we are still getting our high yields, still benefiting from the dividend growth and the resultant price growth. How is your retirement income doing? Does it increase? For the long run, as an alternative to high yield stocks, consider common stocks with a bit lower yield to begin with, but with good dividend growth. We own three of these stocks. I bought Loblaw ( no 's') instead of Metro, drats, at about $50. Then L fell to below $30. Loblaw seems to be recovering now. The dividend held, though, at 84 cents. My income from Loblaw has been flat for the last few years…like a bond. Ship happens, as our son says: He works on one (a ship) as Financial Controller. Next Monday he'll be back in Kingston for a few days. YES! Off to the pub for a few pints and Luke's for smoked meat. He's a Queen's Honour B. Comm 2000 graduate.

comments/ron_baron.txt · Last modified: 2009/05/19 12:55 by tom
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