#13 Chris Mayer: 100-Baggers
Investing by the Books
How to Evaluate a Capitallocation Decision?
The porkest podcast is a weekly, offbeat look at the world of business. This week we talk about how to value companies based on their track records and incentives. We also hear from Davy Crockett who shares his tips for making money in finance.
Chris Mayer is an expert on stocks that return 100 times or more. In a thoughtful conversation with many company examples, we talk about how to identify 100-baggers and their common characteristics. Chris also shares his portfolio strategy and the mindset needed to reach superior investment results.
For more info about the podcast, go to the episode page.
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Episode Chapters
Part I: INTRO
(00:00) Intro to Chris and 100-Baggers
(03:15) A favorite 100-bagger story
(05:23) The two routes to 100-bagger status
(06:50) The twin engines
(08:14) Chris’s investor evolution
Part II: PEOPLE
(13:13) Owner-operators and incentives
(18:58) Capital allocation decisions
(21:12) Business culture
(24:50) The most important question to management (competition)
(26:58) Companies checking all the People’s boxes
Part III: BUSINESS
(29:18) Business models for the next 50 years
(29:55) Growth
(33:09) Moats
(37:00) Size and industry
(38:26) Holding companies/Serial acquirers
Part IV: STRATEGY
(48:33) Where to start looking for 100-baggers
(50:05) Sosnoff’s Law
(50:53) Valuation
(52:11) Portfolio construction
(55:07) Kelly criterion
(56:47) Position size
(58:33) Selling and switching a position
(1:00:47) The Coffee Can approach
(1:05:10) Cash position
Part V: MINDSET
(1:07:21) Personal traits to realize 100-baggers
(1:10:51) How to improve patience
(1:14:27) Most common biases
(1:16:16) Learning from success and failure
(1:20:03) Books to find & hold on to 100-baggers
(1:22:29) Chris’s upcoming book
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Articles & Books Mentioned
- 100-Baggers - Chris Mayer
- Humble on Wall Street - Martin T. Sosnoff (1975)
- Silent Investor, Silent Loser - Martin T. Sosnoff (1987)
- Coffee Can Approach - Robert G. Kirby (1984)
- How Do You Know - Chris Mayer (2018)
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Companies Mentioned (in order of its first appearance)
- Monster Beverage
- McDonald's
- Starbucks
- Brown & Brown
- Domino’s Pizza
- Copart
- Insurance Auto Auctions
- ODFL
- Berkshire Hathaway
- Lifco
- Addtech
- Lagercrantz
- Bergman & Beving
- Danaher
- Constellation Software
- Nibe
- Assa Abloy
- Franklin Resources
- Wix.com
- Xerox
- Kodak
- Nokia
- Valeant
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More on Chris Mayer
Books: https://www.amazon.com/Christopher-W-Mayer/e/B001IGOH5E?ref=sr_ntt_srch_lnk_2&qid=1641899969&sr=1-2
Twitter: https://twitter.com/chriswmayer
Blog: https://www.woodlockhousefamilycapital.com/blog
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What is Investing by the Books?
Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.
Visit the website: http://www.investingbythebooks.com/
Follow on Twitter: https://twitter.com/Investbythebook
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What is Redeye?
Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.
Visit the website: https://www.redeye.se/
Follow on Twitter: https://twitter.com/Redeye_
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Disclaimer
Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se
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