Baron Capital is one of the investment managers we use for a large number of client portfolios. The founder, Ron Baron, has a gift. He makes complicated concepts easy to understand. Plus, I kind of like his sense of humor. Hopefully you do too! Here is Ron’s take on inflation during his lifetime. What is your perspective?

Ron’s home: during his lifetime, the price of the home in which he was born has grown by 106 times! Many times we think of our home as an investment, and it feels that way. But even for an investment with such a huge return, the compound annual growth rate was just over 6%. I guess that means Ron is not a young man any more.

Salaries: Ron’s first professional job was as a U.S. Patent Examiner. The annual salary for that job has grown by just over 5% per year. I guess that might help offset inflation, but how much did inflation grow over that period of time? See next.

Gasoline: gas has gone up by 3.9% per year over this same timeframe.

Cars: A Ford Mustang (starting price) has grown by 4.5% per year over his lifetime.

And he has a few others in there, including golf caddy fees.  How have investments done over this time?

Click the following link to see more.

https://assetsandincome.com/wp-content/uploads/2023/12/2023-12_Inflation_According_to_Ron_Baron.pdf

 

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