We Study Billionaires - The Investor’s Podcast Network

TIP556: 100 to 1 in the Stock Market by Thomas Phelps

whatshot 16 snips

Jun 2, 2023

Discover the secrets of successful investing with insights from Thomas Phelps's essential guide. Explore the characteristics that propel companies to skyrocket their stock prices by 100x, and learn why patience is crucial for investors. Uncover strategies for identifying high-growth stocks based on long-term fundamentals rather than short-term metrics. Dive into the world of compounding and the importance of aligning investments with personal values. This engaging discussion makes the case for disciplined investing amidst market chaos.

56:34

forum

Ask episode

web_stories

AI Snips

view_agenda

Chapters

menu_book

Books

auto_awesome

Transcript

info_circle

Episode notes

volunteer_activism

ADVICE

Think Big

Think big and don't settle for small gains in investing.
Phelps emphasizes aiming for substantial returns, not just quick profits.

volunteer_activism

ADVICE

Ideal Investment Criteria

Invest in small, relatively unknown companies with unique products.
Seek strong, research-minded management teams.

question_answer

ANECDOTE

Successful Investor Example

An everyday person built a large portfolio by buying and holding.
He focused on small, unknown firms with unique products and strong management.

Get the Snipd Podcast app to discover more snips from this episode

The Power of Patience in Investing

04:02 • 12min

chevron_right

Finding Value in Long-term Investments

16:28 • 9min

chevron_right

Wise Investing Principles

25:28 • 10min

chevron_right

Market Resilience and Investment Strategies

35:51 • 7min

chevron_right

Long-Term Investment Strategies and Quality Assets

42:56 • 2min

chevron_right

Investment Wisdom: The Long-Term Perspective

45:19 • 4min

chevron_right

The Power of Compounding: Patience in Investing

49:46 • 2min

chevron_right

The Power of Patience in Investing

51:54 • 8min

chevron_right

The Psychology of Money

Timeless Lessons on Wealth, Greed, and Happiness

Morgan Housel

In 'The Psychology of Money,' Morgan Housel delves into the psychological and emotional aspects of financial decisions. The book consists of 19 short stories that illustrate how personal history, worldview, emotions, and biases influence financial outcomes. Housel emphasizes the importance of behavior over knowledge in managing money, highlighting the power of compounding, the dangers of greed, and the pursuit of happiness beyond mere wealth accumulation. He advocates for a frugal lifestyle, long-term perspective, and a balanced approach to investing, stressing that financial success is more about mindset and discipline than about technical financial knowledge[2][3][4].

100 to 1 in the Stock Market

A Distinguished Security Analyst Tells How to Make More of Your Investment Opportunities

Thomas Phelps

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.

100 baggers

Christopher Mayer

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

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
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.

NEW TO THE SHOW?

Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

River
Toyota
Sun Life
The Bitcoin Way
Meyka
Sound Advisory
Industrious
Range Rover
iFlex Stretch Studios
Briggs & Riley
Public
American Express
USPS
Shopify

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Home Top podcasts Popular guests