The Building Blocks of a 100-Bagger with Chris Mayer, Author of 100-Baggers

My guest on the show today is Chris Mayer, the Portfolio Manager of the Woodlock House Family Capital fund and the co-founder of the firm. He is also the author of 100 Baggers: Stocks That Return 100-to-1 and How To Find Them. You will notice that we are doing something a little different with this episode. Chris is our first guest who is not an executive at a public company. But, since this podcast is called Compounders: The Anatomy of a Multibagger, we thought it would be great to have on the guy who literally wrote the book on finding 100-baggers. In this wide-ranging interview, Chris and I discussed:
- The common attributes of 100-baggers Chris found in his study of compounders;
- The biases that make it hard for investors to realize a 100-bagger;
- Why individual investors might be more likely than are institutional investors to get the full benefit of decades of compounding;
- Where serial acquirers fit within the 100-bagger paradigm; and
- Why high incremental returns on capital are so important to long-term success
This episode of Compounders: The Anatomy of a Multibagger is sponsored by Tegus, an innovative and disruptive company that is changing the way professional investors work. For more information, please visit: www.tegus.co/
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All opinions expressed by your hosts and the podcast guests are solely their own opinions and do not reflect the opinion of Cove Street Capital or any affiliates. This podcast is for informational purposes only, it is not investment advice, and should not be relied upon for any investment decisions. We are not recommending the purchase or sale of any securities. The hosts and guests may be beneficial owners of the securities discussed. You should not assume that the securities discussed are or will be profitable.

[@77magicbus]

Very good interview.

[@beverlyhills7883]

Thanks!

[@octhx]

18:00 Focus on the business not the share price

[@RJ-ry5qu]

Great interview

[@nicolas395]

Chris strikes a resemblance to Billy Bob Thornton lol had to say it. Great stuff

[@dksculpture]

🙏 Subscribed!

[@RolfStumpfRailMedia]

Triaging your investment ideas is a great way to concentrate the portfolio. I am doing that in hindsight... It's better doing it before buying.

[@gurkamalkanwar5776]

Great interview, thanks for the content, Is upstart a 100 Bagger?

[@Reese-Alex]

UPST could be a 100 bagger but it doesn’t qualify yet based on the fundamentals and is at least a couple of years from being considered

[@Tendomcgoobin]

No

[@christopherstewart9874]

Regarding waiting because a stock you like is too expensive. He bought Copart during the pandemic, maybe for $31-32 per share, because it was finally cheap enough. A few years earlier, he didn't buy it because it was too expensive at $9 per share. If a company fits all your criteria other than valuation, waiting for a better valuation might be penny wise and pound foolish.

[@theWebWizrd]

That observation ignores uncertainty. In hindsight you can of course say that you could have bought that expensive business at that time and been fine. But in the moment you can't say that, because often (more often than not, according to what I have seen of statistics) you get a lower rate of return with a higher valuation. You could have bought Microsoft, one of the absolute best companies of all time, and had a negative return for 15 years due to nothing but evaluation. Same with Coca Cola, another of the best of all time. What you are saying is aking to saying you should have just put your money on black after you have already seen the result of the roulette wheel.

[@christopherstewart9874]

Regarding patience or boredom and being willing to hold a stock for 20-30 years without selling. Think of it as YOUR business, not just a stock that you try to sell for a profit. If you start a business, you plan to hold it forever and pass it on to your kids (and hope they pass it on to their kids). You would probably be much, much more successful if you could only buy stocks, not sell them. (After all, you could only lose 100% in a stock, but you could make 10,000%.)