Compounding Quality
Compounding Quality

@QCompounding

17 Tweets 6 reads Nov 21, 2024
One of the best books I ever read?
100-baggers from Christopher Mayer
I summarized everything in 15 bullet points: x.com
1. 100-baggers = 100x your money
A $10,000 investment grows into $1 million.
It requires patience, discipline, and understanding the compounding effect. x.com
2. Anyone can find them
You don’t need an MBA or Wall Street ties.
All you need is a steady commitment. x.com
3. Buy right, hold tight
The secret: find great businesses and resist selling.
Time is the best friend of a compounder. x.com
4. Focus on business growth, not stock prices
Great companies have growing revenues, high returns on equity, and reinvest profits wisely. x.com
5. The coffee-can portfolio
Invest in promising stocks, then “forget” them for a decade.
It shields you from emotional decisions. x.com
6. Avoid market noise
Constant activity and trading kill long-term wealth.
Avoid market noise and react accordingly. x.com
7. Growth is king
Look for companies with new products, expanding markets, and consistent improvements.
Earnings and valuation growth drive 100-baggers. x.com
8. Small caps rock
Big returns often start with small, overlooked companies.
They have room to scale and surprise. x.com
9. Skin in the game matters
Owner-operators with stakes in their business work harder to drive long-term success. x.com
10. Patience beats timing
Market dips and bear cycles are opportunities, not exit signals.
Think long-term, even when the ride gets bumpy. x.com
11. Watch out for sell traps
Selling winners too soon can be costly.
A $10,000 investment in Disney in 1966, sold early, missed decades of massive growth. x.com
12. Multiples amplify returns
Growing earnings and rising P/E ratios multiply wealth.
Both matter, but the journey takes years. x.com
13. Hold through pain
Apple dropped 80% twice on its way to being a 800-bagger.
Hold on to your winners, even in bad times. x.com
14. Mistakes will happen
Not every pick will succeed, but a few big winners can more than offset failures.
Concentrate, then diversify over time. x.com
15. The power of compounding is magical
An annual return of 20% turns $10,000 into $1 million in 25 years.
Long-term wealth is about not being in a hurry. x.com
That's it for today.
If you liked this, you’ll LOVE our free Financial Analysis course.
Grab it for free here: compounding-quality.ck.page

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