100 Baggers: by Christopher W. Mayer is a book that explores the concept of finding stocks that have the potential to provide extraordinary returns, increasing in value by 100 times or more.
The Power of Long-Term Investing:
Mayer emphasizes the importance of a long-term investment approach and highlights how compounding can lead to exceptional returns. He encourages investors to have patience and stay invested in high-quality companies for extended periods.
Characteristics of 100 Baggers:
The author identifies common characteristics found in companies . These include a durable and scalable business model, competent management, a strong competitive advantage, and the ability to compound earnings and revenue over time.
Identifying Potential 100 Baggers:
This includes analyzing financial statements, studying industry dynamics, assessing the company's growth prospects, and evaluating management's track record.
Case Studies: The book presents numerous case studies of past 100 baggers to illustrate the concepts discussed. Mayer analyzes these companies' histories, highlighting the factors that contributed to their exceptional growth and success.
Risk Management: While the focus is on finding high-potential stocks, Mayer also emphasizes the importance of risk management. He discusses the need for diversification, being aware of potential pitfalls, and maintaining a margin of safety when investing in such stocks.
Investor Mindset: The book explores the psychological aspects of investing and the challenges that investors may face when pursuing 100 baggers.The importance of staying disciplined, overcoming biases, and avoiding common mistakes that can hinder long-term investment success.
Historical Perspective: Mayer draws upon historical examples to provide context and evidence for his investment principles. He examines the long-term performance of certain stocks and showcases how they achieved remarkable returns over time.
"100 Baggers" presents Mayer's research and observations, and it's important for readers to conduct their own due diligence and consider their own investment goals and risk tolerance.
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ROCE :stands for Return on Capital Employed, which is a financial ratio used to assess the profitability and efficiency of a company's capital investments.
It measures the return a company generates from the capital employed in its operations. #learning#roce
ROCE is calculated by dividing a company's earnings before interest and taxes (EBIT) by its capital employed, which includes both equity and debt. It is expressed as a percentage.
A higher ROCE indicates better profitability and efficiency in utilizing capital, while a lower ROCE suggests lower profitability or inefficiency.
In finance, macros, short for macroeconomics, refer to the study and analysis of the broader economic factors that impact financial markets, investments, and the overall economy.
Macroeconomic indicators and trends play a significant role in shaping investment strategies, policy decisions, and financial market dynamics.
Lets break this down into simple real life example .
Think of macroeconomics as taking a bird's eye view of the economy.
Exhicon Group, established in 1997 is Indian Multinational with business interests in Convention & Fairs, Hospitality,Media,FMCG,MEP,Solar Energy,Gadgets,Healthcare,Events Infrastructure, FMCG,Real Estate, & International trading .
EXHICON is credited to construct India’s biggest column less Exhibition Center, executed record breaking events such as Mahakumbh at Haridwar and have made world’s biggest stage in record time for “Lay Tarang” Nagpur, a Guinness record.
The cash conversion cycle :
measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. It represents the overall process of purchasing inventory, selling it, and collecting payment from customers.
A shorter cash conversion cycle is good, as it indicates that a company can generate cash flow more quickly and efficiently from its operational activities. It is an important measure for assessing a company's liquidity and efficiency in managing its working capital.
Pay Yourself First:
One of the central principles of "The Automatic Millionaire" is the concept of paying yourself first. This means setting aside a portion of your income for savings and investments before you allocate money for other expenses.
The Latte Factor:
"Latte Factor," which refers to small daily expenses that can add up over time and prevent you from building wealth. By cutting back on unnecessary expenditures and redirecting those savings towards investments, you can accumulate wealth.
Lets learn about the below terms usually available on screener . #learning Thread
Debtor days:
Also known as accounts receivable days, is the average number of days it takes for a business to collect payment from its customers for goods or services provided on credit. The efficiency of a company in collecting outstanding payments from its customers.
Inventory days:
is a financial metric that indicates the average number of days it takes for a company to sell its inventory. It measures the efficiency of inventory management by assessing how quickly inventory is converted into sales.