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Ron Baron Comments on Red Rock Resorts

- By Holly LaFon

Shares of Red Rock Resorts, Inc. (NASDAQ:RRR), a casino operator focused on the Las Vegas locals market, decreased as many Las Vegas residents left on vacation given the strong economy and a heat wave that affected the area. We consider the drop in visitation to be temporary, and do not foresee a long-term slowdown in the locals market. Las Vegas' population continues to grow, wages continue to rise 2% to 3% per year, and housing prices are at record highs. We view such data optimistically, and we see the stock's current valuation as attractive.

From Ron Baron (Trades, Portfolio)'s third-quarter Baron Partners Fund shareholder letter.
This article first appeared on GuruFocus.