The Meb Faber Show - Better Investing Andrew Peck, Baron Capital – A Growth Manager’s Take on The Market | #417
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May 23, 2022 Andrew Peck, co-CIO at Baron Capital, dives deep into the art of growth investing. He shares his long-term, fundamental approach and discusses the importance of letting winners run while maintaining a disciplined sell strategy. Topics include his current market adjustments, recent buys like CoStar and SpaceX, and the advantages of focusing on durable competitive advantages. Peck emphasizes the opportunities arising from market volatility and offers insights into sector positioning, particularly in technology and healthcare.
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Long-Term Growth Over Short-Term Churn
- Barron focuses on long-term ownership and low turnover, typically holding stocks for 5-10+ years.
- They target businesses that can double in ~5 years and model earnings out that horizon rather than quarters.
Invest Only When Five-Year Targets Work
- Do focus on secular growth markets, sustainable competitive advantages, and strong management before investing.
- Model company financials five years out and buy only when valuations allow your target return.
The Schwab 100-Bagger
- Barron has owned Charles Schwab since 1992 and its cost basis was in the $0.60–$0.70 range per share.
- That holding became a 100-bagger and remains a hallmark long-term investment for the firm.
