Billionaire buy-and-hold investor Ron Baron said Tuesday he believes stocks are cheap because people are still afraid to put money in the market in the wake of the financial crisis.
"Everyone is afraid because of what happened in 2008 and 2009. They can remember that very clearly," Baron told CNBC's "Squawk Box. He also cited concerns over the flash crashes of 2010 and last summer.
But Baron said he ties the stock market with the economy. "The stock market gets the tailwind from the economy," he said in an interview in which he also talked about stocks he likes such as Tesla and Under Armour and missed opportunities such as Netflix.