Chris Mayer is well known for analyzing 100-baggers.
Recently, he was asked to name the less popular characteristics of finding stocks that can 10x-100x your money.
I can't stop thinking about these 5 crucial ideas he discussed.
Here’s a breakdown of each one:
🧵👇
Recently, he was asked to name the less popular characteristics of finding stocks that can 10x-100x your money.
I can't stop thinking about these 5 crucial ideas he discussed.
Here’s a breakdown of each one:
🧵👇
Tip #1: Family Ownership
Many investors won't bother to see if the CEO is a founder or part of the founding family.
Missing out on this is a mistake.
People care about legacy and are more successful when they come from a long line of owners of their family businesses.
Many investors won't bother to see if the CEO is a founder or part of the founding family.
Missing out on this is a mistake.
People care about legacy and are more successful when they come from a long line of owners of their family businesses.
Tip #2: Culture and Long-term Mindset
Finding out more about the culture of a company is hard to do from reading 10Qs.
Research current and former employees to get a real idea of the company's culture.
Employees who stick around and discuss the future are positive signs.
Finding out more about the culture of a company is hard to do from reading 10Qs.
Research current and former employees to get a real idea of the company's culture.
Employees who stick around and discuss the future are positive signs.
Tip #3: Invest Counter Cyclically
Many investors fear when a company does M&A during rocky economic periods.
But investing this way is how you get the most profitable deals.
Less competition = fewer bidding wars, lower prices, and higher returns.
Many investors fear when a company does M&A during rocky economic periods.
But investing this way is how you get the most profitable deals.
Less competition = fewer bidding wars, lower prices, and higher returns.
Tip #4: Incentives
I rarely see a company report that even mentions incentives.
An incentive program that aligns management with shareholders can be magical if you find it.
Look at $CSU.TO, or $WSO.
Incredible incentive program and incredible returns.
I rarely see a company report that even mentions incentives.
An incentive program that aligns management with shareholders can be magical if you find it.
Look at $CSU.TO, or $WSO.
Incredible incentive program and incredible returns.
Tip #5: High ROE/ROIC
Not enough investors place enough importance on this metric.
If a company has a 10-year history of 5% ROE, you're unable to ever make monster returns.
Find the companies with high sustainable ROE and you are one step closer to a 100-bagger!
Not enough investors place enough importance on this metric.
If a company has a 10-year history of 5% ROE, you're unable to ever make monster returns.
Find the companies with high sustainable ROE and you are one step closer to a 100-bagger!
TL;DR - 5 lessons from @chriswmayer that will make you rich by improving your analysis
• Management aligned with shareholders
• Great culture and long-term mindset
• Invest counter-cyclically
• High insider ownership
• High ROE/ROIC
• Management aligned with shareholders
• Great culture and long-term mindset
• Invest counter-cyclically
• High insider ownership
• High ROE/ROIC
@chriswmayer That's a wrap!
If you enjoyed this thread:
1. Follow me @IrrationalMrkts for more of these
2. RT the tweet below to share this thread with your audience
If you enjoyed this thread:
1. Follow me @IrrationalMrkts for more of these
2. RT the tweet below to share this thread with your audience
https://twitter.com/1254855041493528576/status/1587520900215324672
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