On today’s episode, Clay reviews Thomas Phelps’s book - 100 to 1 in the Stock Market, and also highlights writings put out by Akre Capital Management.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
02:30 - Common characteristics of companies that increased their share price by 100x.
11:11 - Why most investors aren’t able to hang onto their winners as Phelps suggests.
14:05 - Why good stock selection is much more important than good stock market timing.
31:36 - Mental models Phelps uses to figure out the odds when investing.
42:47 - Why we should invest with companies that align with our own values.
45:29 - When to look for potential 100 Baggers.
47:39 - The four categories of companies that were 100 Baggers in Phelps’s study.
52:53 - Who is best equipped to be individual stock pickers.
56:57 - Chuck Akre’s three-legged stool approach.
60:15 - Takeaways from two of Akre Capital’s brilliant articles - ‘Why Compounding is so Difficult’ and ‘The Art of (Not) Selling’.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Thomas Phelps’s book - 100 to 1 in the Stock Market.
- Akre Capital Managements writings: Why Compounding is so Difficult and The Art of (Not) Selling.
- Check out our newly released TIP Mastermind Community.
- Check out our recent episode covering the The Outsiders by William Thorndike, or watch the video.
- Follow Clay on Twitter.
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