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The Art of Value

How To Get 100x Stock Returns - Thomas Phelps

Aug 6, 2023
Thomas Phelps, author of the classic stock investing book '100 to 1 in the Stock Market', reveals what it takes to find and hold stocks that can deliver 100x returns. Topics discussed include buying right, holding on, attributes to look for in stocks, the importance of long-term holding, and the relationship between stock returns and business growth.
10:41

Episode guests

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Quick takeaways

  • Investors should focus on smaller companies with longer growth runways for the potential of significant returns.
  • Investing in relatively unknown companies with untapped growth potential can provide opportunities before they become crowded trades.

Deep dives

Key Point 1: Investing in smaller companies with long growth runway

Thomas Phelps suggests that investors should look for smaller companies to invest in, as they have a longer growth runway compared to larger companies. Smaller companies have more potential for significant growth, while larger companies may already be close to their growth limit. Monish Pabrais also supports this idea, focusing on companies under $5 billion. Although investing in smaller companies carries more risk, Phelps argues that the potential rewards make it worthwhile.

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