Investing

Billionaire Ron Baron says the stock market and economy will double in 13 years

Key Points
  • Billionaire investor Ron Baron says interest rates and oil prices will stay lower for "a very long time."
  • As a result, he says, the economy is going to grow much faster.
Ron Baron: Expect market and US economy to double
VIDEO2:0802:08
Ron Baron: Expect market and US economy to double

Billionaire investor Ron Baron told CNBC on Tuesday that stock prices are cheaper than they should be, and he predicts in 13 years the stock market and economy are going to double.

In an appearance on "Squawk Box," the 74-year-old founder of Baron Capital said interest rates and oil prices will stay lower for "a very long time."

"With lower interest rates and lower oil prices than we think, we think the economy is going to grow much faster than it would have otherwise," said Baron, whose company has $23 billion in assets under management.

Baron said he is optimistic about the stock market overall and said GDP is "significantly understated."

"What we do for the only part is research on companies and try to invest in them at good prices where we think we can double our money in five or six years. Over the long term, we've been able to accomplish that," he said.

He said he doesn't like to look at day-to-day events that move the stock market.

"Whether it's [Donald] Trump being the president, or whether it's Brexit, or whether it's interest rates or whether it's oil prices, there are things you can't predict, but that's what everyone spends their time trying to focus on and trying to predict," he said.

"And yet if they can predict it, they still wouldn't know if that's going to have an impact on what stock prices do shortly afterwards."