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

If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive-looking price, you'll end up with a fine result. - Charlie Munger, Berkshire Hathaway Vice Chairman and legendary investor.

The Most Important Thing You Must Do To Get 100 Baggers

All of the stock characteristics are well and good, but Mayer also harps on probably the most important investor trait needed to "bag" a 100-to-1 stock.

That trait is simple but rare: patience.

The average 100 bagger in the study took about 26 years to get there. The real power in holding a great company is the compounding effect. The book shows how selling one of these after 20 years might net you a 40x return - not bad - but just a few more years of compounding and you've more than DOUBLED that result.

Compound interest is the eighth natural wonder of the world and the most powerful thing I have ever encountered. - Albert Einstein, Genius.

The chapter in the book talking about the "coffee can" portfolio is pretty powerful. It's amazing how much laziness pays off in stock investing!

Conclusion

I highly recommend 100 Baggers: Stocks That Return 100-to-1 And How To Find Them. It is one of the better long-term, business-focused investing books I've read in some time. It is also written in a straightforward, easy-to-understand language that investors of all experience levels can grasp. A 100 bagger or two in your portfolio can be life-changing - so why not spend some time looking for them?

1 2 3
View single page >> |

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.