The 100 Year Thinkers: Long-Term Compounding in a Short-Term World The Elusive Search for the Perfect Business | Chris Mayer and Robert Hagstrom
Nov 13, 2025
Robert Hagstrom, a seasoned investor and author specializing in long-term compounding, and Chris Mayer, co-founder of Woodlock House Family Capital and author of 'The 100-Bagger', dive into what defines a perfect business. They discuss the challenges of holding investments through volatility and the importance of management quality and owner earnings over GAAP. Behavioral traps that lead to missed opportunities are explored, as well as navigating fast-changing industries with an eye on competitive advantages shaped by technology, networks, and scale.
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Durable Cash-Generating Businesses Win
- A perfect business generates excess cash, earns above its cost of capital, and shows durable sales growth.
- Longevity of those economics is the key determinant of a perfect stock.
Ignore Short-Term Market Noise
- Act like an owner and pretend the stock market doesn't exist when assessing your holdings.
- Focus on company economics, competitors, and industry progress to survive volatility.
Three Sources Of Market Inefficiency
- Market inefficiencies come from information gaps, analytical laziness, and behavioral mistakes.
- Time arbitrage (being patient) and analytical work create a durable investor edge.
