The Importance of a Strong Management Team in Business

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Constellation software has a strong bench and can continue without its founder
Reliance on one person can lead to problems
Businesses should strive to be strong enough to continue without the founder
Management owning a decent percentage of stocks is a positive sign
Egregious executive compensation can be a red flag
Bonuses based on sales growth or e-baddah increases can be concerning
Investors should consider the culture of the business
Investors can get overly scared by higher multiples

Robert Leonard chats with Chris Mayer about finding 100 bagger stocks – what to look for, how to find them, what metrics to analyze, how to think about valuation, the company’s management team, and much more.

Chris is the Portfolio Manager and co-founder of Woodlock House Family Capital, and author of the book 100 Baggers.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

01:34 - What Chris learned after studying 365 stocks that became 100 baggers in the past.

03:45 - What were the common characteristics of these 100 bagger stocks?

06:42 - How early did investors have to get into these stocks to 100x their returns?

08:24 - What was the average market cap of the companies that went on to become 100 baggers?

36:30 - An example of one of Chris’s stock picks he thinks will become a future 100 bagger.

42:42 - The importance of business quality over current valuation and what metrics to look at.

50:44 - Potential traps investors can fall into when trying to find 100 baggers.

55:38 - When Chris would consider selling one of his stocks.

59:09 - Chris’s investment process to find future 100- baggers today.

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out: Woodlock House Family Capital.
Check out Chris Mayer's Book: 100 Baggers: Stocks that Return 100-to-1 and How to Find Them.
Check out TIP's article: 100 Bagger Stocks: What They Are and How to Find Them.

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