Book Review: How To Find Stocks That Return 100-To-1

Finding stocks that return 100-to-1 on your investment may seem like a dream.

The financial implications for individual investors are substantial. After all, that kind of return on a single investment turns $10,000 into $1 million dollars - life-changing results. A single 100 bagger in a portfolio of 20+ stocks can make up for a LOT of mistakes. Two 100 baggers in that portfolio and early retirement becomes a real possibility.

But here's the thing. It is NOT impossible to find these!

One of my key inspirations is Christopher Mayer's book 100 Baggers: Stocks That Return 100-to-1 And How To Find Them.

In his book, Mayer lists out all the stocks that returned 100-to-1 over a 50 year period from 1962-2014. Then, he digs into the list to generate a handful of key components to each of the stocks. Just as importantly, he lists a number of critical behaviors that investors need to maintain in order to reach those 100-to-1 results.

In this article, I'll highlight some of his findings and the key points of the book. If you are interested, I HIGHLY recommend picking up the book on Amazon or finding a copy somewhere. It is an under-rated gem in the investing book world, a handbook for the kind of investing we are looking to do here.

100 Baggers Are Not Impossible - And Not Even That Rare

How many different stocks would you suppose returned 100-to-1 over a 50 year period? A 20 year period?

One of the most enlightening findings in the book was the fact that these kinds of stocks are not particularly rare. 365 different stocks accomplished the feat within the 50 year review period.

Even over an average investor's career, this feat is very doable. Of those 365 stocks, over 100 of them grew 100-to-1 in less than 20 years.

For many in the list, a 100-to-1 return was just the beginning over that 50-year stretch. Walmart (WMT) returned 12,000x. Altria (MO) returned 15,000x. The "poster child" for great investments, Warren Buffett's Berkshire Hathaway (BRK-B), returned an incredible 18,000-to-1 on investment!

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Disclaimer: The content is provided by Alexander Online Properties LLC (AOP LLC) for informational purposes only. The material should not be considered as investment advice or used as the basis ...

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