Chris Mayer, co-founder of Woodlock House Family Capital and author of '100 Baggers', shares invaluable insights on long-term investing. He introduces his 'CODE' method for selecting stocks, emphasizing low prices, owner involvement, transparency, and strong finances, with Brown & Brown as a prime example. Mayer stresses the importance of patience during market downturns, revealing how sticking to core principles can lead to success despite missing immediate opportunities. He also highlights the hidden potential in Swedish stocks, showcasing specific companies to watch.
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insights INSIGHT
CODE Stock Picking Principles
Chris Mayer's "CODE" acronym guides his stock picking: Cheap, Owner operator, Disclosures, Excellent financial condition.
These factors together build conviction for long-term hold investments with minimal turnover.
insights INSIGHT
Owner-Operator Advantages
Companies with owner-operators tend to invest more counter-cyclically and treat employees better.
Skin in the game aligns incentives, resulting in less dilution and better long-term capital allocation.
question_answer ANECDOTE
Old Dominion Freight Lines Example
Old Dominion Freight Lines in trucking keeps driver turnover far below industry average by training internally and retaining drivers during downturns.
This culture continuity, rooted in family origins, supports strong management and long-term success.
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In '100 to 1 in the Stock Market,' Thomas Phelps outlines a buy-and-hold investing strategy that focuses on identifying and holding stocks of companies with high growth potential for at least ten years. The book, written in 1972, analyzes over 350 stocks that increased significantly in value from 1932 to 1971 and identifies common characteristics of these successful companies. Phelps advocates for a patient approach, emphasizing the importance of not selling stocks to preserve wealth and pass it on to heirs. The book provides insights into long-term wealth creation and the identification of profitable business models without visible growth ceilings.
Winning On Wall Street
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In this investment classic, Martin Zweig shares his personal life stories and the development of his investment methodology. The book details his market timing model, which combines monetary indicators (such as prime rate, Fed indicators, and installment debt) with momentum indicators. Zweig explains how to use these indicators to time the market, select stocks, and utilize stop-loss orders. Although some information may be dated, the book remains relevant for its insights into combining technical and fundamental analysis and the importance of personal research in investing.
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100 Baggers, Stocks That Return 100 to 1 and How to Find Them
Christopher Mayer
On this week's Stansberry Investor Hour, Dan and Corey welcome Chris Mayer back to the show. Chris is co-founder and portfolio manager of Woodlock House Family Capital – a firm that focuses on long-term, patient investing. He has also written several books, including 100 Baggers: Stocks That Return 100-to-1 and How to Find Them.
Chris kicks things off by breaking down his "CODE" acronym that he uses for picking stocks – cheap, owner operator, disclosures, and excellent financial condition. He lists Brown & Brown as an example of one such company that checks all four boxes. And he shares a trucking company he likes because of its lower-than-average turnover rate. This leads to a conversation about the importance of management having skin in the game and why investors should mostly leave their portfolios alone. Chris then uses Monster Beverage as a case study for identifying a good company. (1:47)
Next, Chris talks about investor psychology. He says that it's difficult to hold stocks through large drawdowns and through periods of boredom, but that's how you can make a lot of money in the long term. Doing nothing is often the best thing you can do for your portfolio. Chris also covers how philosophy has influenced his investing style, the hidden opportunity in Swedish stocks, two specific Swedish companies that he likes today, and why you should always stick to your core principles – even if it means missing some winners along the way. (20:02)
Finally, Chris explains that staying true to your investment principles is hardest (yet also most crucial) when times get tough. It all comes down to knowing yourself, your risk tolerance, and what you're most comfortable investing in. Chris shares the names of two spun-off companies he's excited about today, as he expects a big surge in free cash flow for both. He clarifies that these are for holding long term rather than trying to make a quick buck. And Chris finishes with a discussion about why the recent tariff drama doesn't really matter. (39:26)
Stansberry Investor Hour 
