Ron Baron: A Fund Legend Shares Stock-Picking Secrets Ron Baron is chairman, CEO and portfolio manager at Baron Capital, the investment firm he founded in 1982. Read on as we ask the master of Baron Funds about what he looks for in growth companies, what he emphasizes to his portfolio managers and analysts and the stocks he likes now. You''re a master of growth investing, which involves finding companies with prospects for faster-than-average profit growth, among other measures. What do you look for? Everyone can understand what a growth company is. What is hard for most people is being able to understand competitive advantage – the most important thing. That''s something you can''t figure out with an algorithm. You need to understand a business, how it operates and what makes it difficult for others to compete. It may have a license, patents or a head start in technology. SEE MORE The 15 Best Stocks to Buy for the Rest of 2022 For example, Tesla''s ( TSLA ) competitive advantage is in its culture of rapid innovation. Tesla has a 10-year lead making batteries and electric cars; it has revolutionized an entire industry.