Analyzing Competitive Advantage in Investments

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Companies with a larger market share and fewer competitors are more appealing to buy.
It is important to focus on competition and where it is likely to come from.
Not all competitive advantages are equal; having a strong brand that allows for higher pricing can be beneficial, but it may not be sustainable in the long term.
Qualitative analysis is necessary to assess the strength of a competitive advantage.
Reassessing the competitive advantages of invested companies should be done regularly, potentially on a yearly basis.

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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