100 Baggers Book Review: Buy and Keep the right Stocks
100 Baggers is a book about searching and keeping stocks which increase 100 times their value after buying. Published in 2015, the book has 220 pages and 365 companies that have returned 100 times their value.
Every issue works as an investment opportunity if you can find out the solution. Phelps knew a few things about investing and he conducted a study on every stock where he got a return of $100 for investing $1. The book simply talks about “buying right and holding it”.
Who wouldn’t want to own a stock which gives you a 100 times return. The introduction of the book educates the readers about 100 baggers and how anyone can invest in. It has been based on the 100 to 1 in the Stock Market from Thomas Phelbs but with a new list of 100 baggers in the United States Market.
It begins with real stories of private investors who entered a 100 bagger investment. It has detailed studies on stocks which went up more than 100 times like Monster Beverage, Amazon, Pepsi, MTY and more.
The author suggests seeing at the high ROE and proprietor companies or at Outsider companies. Of course the book has a mention of Berkshire Hathaway and Warren Buffet. There is also a mention of Kelly criterion and the author advices to bet big if you see a big opportunity.
The book ends with general topic chapters and a gist on what to look for if you need to search for the next 100 baggers.
- Growth and development of the company
- The stock should be cheap to experience multiple expansion
- You require a moat
- It should be a small company (Google will not multiply 100 times anymore)
- Owner operation
- Long run investment
- Good filters needed
- And lot of research and luck.
The author states there isn’t any magical formula to get 100 baggers.
Summary:
The author has put in genuine stories and quotes from renowned investors. He has even outsources the case studies of some investment firm. The core product of the book is the 100 baggers table at the end.
The book explains how you can get long term success as per the psychology of the investor and how to filter and pick promising stocks. It is a great book for novice investors who want to learn about the power of compounding.
