Stocks with 100x RETURNS: Uncover the Strategy (TIP556)
ฝัง
- เผยแพร่เมื่อ 5 มิ.ย. 2024
- 💰Click here to download your FREE guide to Stop Worrying About Your Finances In 4 Simple Steps: www.theinvestorspodcast.com/s...
🔐 Help companies protect customer privacy in the face of endlessly growing data breaches by investing in Atakama today: www.theinvestorspodcast.com/y...
Clay reviews Thomas Phelps’s book - 100 to 1 in the Stock Market, and also highlights writings put out by Akre Capital Management.
▶️ RELATED EPISODES:
- 100 Baggers: Stocks that Return 100-1 w/ Chris Mayer: • 100 Baggers: Stocks th...
IN THIS EPISODE YOU’LL LEARN:
0:00:00 - Intro
0:01:57 - Common characteristics of companies that increased their share price by 100x.
0:09:27 - Why most investors aren’t able to hang onto their winners as Phelps suggests.
0:12:36 - Why good stock selection is much more important than good stock market timing.
0:22:41 - Mental models Phelps uses to figure out the odds when investing.
0:29:32 - Why we should invest with companies that align with our own values.
0:31:56 - When to look for potential 100 Baggers.
0:33:41 - The four categories of companies that were 100 Baggers in Phelps’s study.
039:47 - Who is best equipped to be individual stock pickers.
0:41:03 - Chuck Akre’s three-legged stool approach.
0:41:51 - Takeaways from two of Akre Capital’s brilliant articles - ‘Why Compounding is so Difficult’ and ‘The Art of (Not) Selling’.
🎧 Listen to our episodes here: link.chtbl.com/WSB
🖊️ Access the transcript and learn more about the guest here: www.theinvestorspodcast.com/e...
📖 BOOK MENTIONED:
- 100 to 1 in the Stock Market by Thomas Phelps: amzn.to/3WEeDeo
Disclosure: Some of the links above are affiliate links that we may earn commission from. This helps keep our show going! 😀
💡 OTHER RESOURCES
- Seeking Alpha is a crowd-sourced content service for financial markets. Take control of your financial future - Use our link here for a 14-day free trial: www.sahg6dtr.com/59QC8Z/R74QP/
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
ABOUT OUR SHOW 🎙
On We Study Billionaires, we interview and study famous financial billionaires including Warren Buffett, Bill Gates, and Ray Dalio. We teach you what we learn and how you can apply their investment strategies in the stock market.
🌍 Website: www.theinvestorspodcast.com/w...
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
📚OUR FREE INVESTING COURSES/RESOURCES www.theinvestorspodcast.com/t...
📊TRY OUR STOCK INVESTING TOOL: TIP FINANCE www.theinvestorspodcast.com/t...
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
❗ DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.
📌 Check out this video next: th-cam.com/video/HR_gJ6WOe60/w-d-xo.html
⚠ IMPORTANT: Please beware of cyber scams and phishing attacks. We will never ask for your contact info in the comments section. Kindly report suspicious accounts you see below. Thank you!
This book was written in 1972 and back then the automobile industry was for a long time and great expending sector and remained the same for a long time. Now, more than 50 years later, it is different
41:27 Chuck Akre
50:21 When to sell
Thinking there isn't much money to be made if you have the same 4-year growth forecast as the market is short sighted - unless you have no interest in 100 baggers - which don't happen in 4 years! If you are hoping to own shares of a company for decades, the 4-year forecast is almost meaningless. Also, truly great companies are very rarely priced at or below their intrinsic value, with the rare exceptions being during extreme recessions like 2008 or market panics like 2020, and the "reasonable" prices you can get then are likely two or three times higher than the "expensive" prices you could have bought them for a few years earlier. I'm in my 70s and started investing in my teens. I have made only two mistakes in that time 1) not buying companies I believed were great companies because the price was "too high" and 2) selling (anything, ever). Of course I made those two mistakes over and over and over again. Many of the companies I thought at the time were great companies eventually turned into 20 and 30 baggers or more (only a few 100 baggers, not counting Berkshire Hathaway, which I always thought was too expensive). The prices I thought were too expensive were ridiculously cheap in retrospect. Also, very, very, very few of the stocks I ever sold are now priced lower than where I sold them.
Those are some serious wins! Ive always stayed in real estate. My friends were day trading and eventually lost thier gambling money. Ive thown small amounts at crytpo and lost half. How do you find companies to buy and how do you determine the value? Ill stay in real estate since thats what i know but keep learning about stocks and hope to learn how to properly evaluate a companies and buy some stocks right, hold forever.
@@1973superdad I was a full time day trader for years. I would highly recommend against day trading. I had one truly great year and then a number of not very good years. Trying to get rich quick is a good way to get poor quick! Life is short and a stressful life is even shorter.
I don't want to confuse brains with a bull market. I was exceedingly lucky, in that 2009 through 2021 were absolutely fabulous years to be long stocks. My approach was to look for companies that I thought had the potential to "change life as we know it." By that I don't mean something like eradicating cancer or producing free energy. I mean simple things like Amazon changing the way we bought stuff, Netflix changing how we watched movies, Apple changing how we listened to music (I first bought Apple after the iPod but before the iPhone), or Starbucks changing how people viewed coffee (coffee shop on every other corner and people walking down the street with a coffee cup in their hand).
All you had to do was keep your eyes open and be aware of changing trends. I followed Peter Lynch's approach of buying what you know. I am a consumer. I limited my purchases to companies that made products for consumers. I didn't pay much that attention to value. I was concerned with whether I thought the companies had to potential to grow like weeds as more and more consumers discovered and bought their products. I missed a lot of good companies, too. I never bought Microsoft, even though I could see back in the '90s that PC sales were going to skyrocket and all the PCs ran Microsoft. Hell, before that I missed McDonald's - everybody with two eyes could see that in the '70s McDonald's was growing like crazy. I probably always thought it was too expensive. Coming back to my first comment above, in the '70s you didn't need a different 4-year growth forecast for McDonald's than the market had - you just needed a 40-year growth forecast!
The real key, though, which I didn't understand at the time, was holding on for the long term. I rebalanced my portfolio every year, which caused me to continually sell off shares of the strongest stocks - which would have become the biggest winners. If I had it to do over again, I would save up until I found a stock I wanted to buy, put all the new savings into that stock and hold it forever, all the while saving up for the next discovery. The portfolio would have gotten highly concentrated, but would have produced much, much better returns.
I'm no great investor or stock picking genius. I bought stocks in companies I thought could grow, in what turned out to be a bull market. I was more lucky than smart.
@christopherstewart9874 great insight. I like the buy and hold forever plan. I also like your suggestion of less is more, keeps things simple.
Thanks for the wisdom. It’s easy to get distracted by price fluctuations - especially when they are available at your fingertips!
TIME STAMPS PLEASE 🙏
Immensely valuable content. Thanks for putting this together, Clay!
Thanks, Rolf! Appreciate the support!
Love this channel. Thanks a lot for the hard work.
Glad you enjoy it!
Not sure why you would look at P/E for a potential 100 bagger growth stock that either isnt profitable yet or just achieved profitability. Better to look at price to revenue, price to sales, etc., and factor in TAM, debt and growth rate for forward estimates of value
Ty❤
A wonderful counterpoint to this book (and Chris Mayer’s) would be 10-99 baggers THAT DIED.
Silicon Valley Bank was a 300-bagger! Now it is a 0-bagger. Every return multiplied by 0 is 0.
Thanks
Could nvda be in this category of being overvalued at the moment, but may keep going up and up. So maybe just bite the bullet and but in now
This is good stuff but one contradiction is the idea that we’ll known stocks should be avoided. That doesn’t make sense given a) the list of 100 baggers and b) your admission that a lot of them are consistently valued highly.
Can you clarify on this?
Hey Brian! For well-known stocks, they are generally well-researched by institutions and likely get much more attention from investors more generally (potentially making them expensive). Tesla and Nvidia are prime examples of this. If you want the big multi-baggers, then I'd look for: 1) Companies that aren't as well-known and 2) Companies that are smaller and have more room to grow
Great Episode! I rushed into my audible app and bought the audiobook, thanks.
This kind of content should have a lot more listeners. But instead 'investors' flock to the thousands of popular channels talking about macro, fed, inflation data and short term trading.
Thank you, Jesper! I'm glad you found the episode valuable. You may also enjoy our episode with Chris Mayer (WSB543) if you haven't caught it already.
@@clayfinck I read his 100 baggers book last year, it was very inspiring, so I will definitely give that episode a listen as well, thanks.
I personally like the Buffett approach vs the 1-100. It’s not likely any company will maintain an ROE > 20% for 25y while reinvesting the lion share of it.
100 is a nice number. But 10 x 10 = 100 too. 5 x 5 x 5 ain’t bad either. Or 2^7. Or …..
The only issue with using more companies through time to get your 100x is the taxes. If done in an IRA, they are the same. And one doesn’t have to rely on a single unknown company going the distance from small cap to mega cap.
Thank you for sharing your thoughts, Dustin!
👍
Why you disagree with Phelps about airplanes and cars if during his study (1970s) those were the best technology human being can offer. You cannot compare his findings with what is applicable now. It's like saying to buffett where is Washington Post now on this internet era? He earn billions on WP.
New technologies and fast-changing industries are very difficult for investors to make money in. Of all of the high-flying tech stocks from the tech bubble, only a handful delivered strong returns (Amazon, Google, Microsoft, etc). Most went to zero! Fast-changing industries are brutal.
You’re completely misunderstanding what Phelps was saying. He meant look for those industries when they are born. Not now…
Google absolutely had competition. Acting like it was obvious now is just anachronistic.
Google had no serious competition. I was there.
Phelps was an analyst. He wasn't even in the top 10 of the best investors.
$ORGN - 100x bagger remember this post
Why do you say that?
Oof lol
Survivorship bias
Potential 100 baggers - $BYND and $AMS.
BYND- Im not so sure, it has no moat, easy to replicate for other players like Nestlé or ever for Wal-Mart to make their Own. And Think it was a hype Stock, it Will not come back.
@@morten170 I disagree. They have a proprietary formula for all their products and they are constantly improving it. The current iteration of the Beyond Burger is far superior to the one you'd buy in stores just 3 months ago. Someone like myself prefers the taste of the brand. I don't eat Impossible or Slutty Vegan for example. There's a brand loyalty that is developing behind the taste and quality of Beyond.
@@morten170 and my average price on it is $11.50. Nobody should be banking on it reaching previous highs, but at the current price is has a lot of potential.
@@thekingdemetri Yes i do agree, that taste, and brand loyalty, will play a role, and that they where first movers is a big advantage. BYND will be the leader in vegetarian foods producers, but it is still a niche marked(but growing).
I do still think that Nestle and other big player will step in and take part when it gets more normal to eat vegetarian food.
I hope you get at 20x or more, i just dont see it happen, the stock is not for me.
@@morten170 yeah I'm more confident that it'll be a 10 bagger vs a 100 bagger, but who knows. Also there is a water shortage issue in the world that's becoming more of a problem every year. Beyond Meat products use 10% of the water that it takes to raise animal protein.
Jmia could 100x
You mean 1/100 😅 …
Please relax before records or allow yourself to speak higher/more freely/less controlled/ natural in melody. We will generously overlook fillers/terms and whatever. There are so many breaks/cuts and each sentence ends with a "downwards melody". It really sounds like a self programmed sounds bot, who plays prefab sentences. It prevents me from further listening despite the content sounds interesting. Cheers
Maybe you should see a doctor. I don't hear any of that even on 2 x speed^^
@@nobodymister5435 i listened for about 5 minutes then I gave up. It is thoroughly exhausting to listen to since it is completely unnatural. The first commenter is absolutely right. I like listening to AI voices more than this.
Use AI to translate different language also in Hindi for growth your channel. Public demand 🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏 I also do it for you.