Great Stocks Evolve But Most Investors Don’t
It’s extremely difficult to capture the right tail of monster winners because they are constantly evolving.
5 min read
It’s extremely difficult to capture the right tail of monster winners because they are constantly evolving.
In bull markets and flat markets, there’s no need for a parachute—you’re still on the plane, climbing higher, cruising effortlessly. But sooner or later, Mr. Market kicks you out. And that’s when reality hits.
To find a 10-bagger first find a stock that can double in three years with conservative fundamental assumptions and no multiple expansion.
The best stock ideas are hated or unknown in the beginning and loved in the end.
There are a bunch of small stocks that will 10x over the next five years that are waiting to be found. Institutions can’t buy them. Only you can.
Stock picking is an individual sport so the winning streaks are intoxicating and the losing streaks excruciating. It's how we deal with both extremes that sets us up for long-term success.
It's when people are at their weakest and most desperate that grifters emerge in full force.
“Sometimes you have to write bad songs to get to the good ones." - John Mayer
If you find a well-run cash generative micro/smallcap, share this article with the management team. Subject: Just Do This!
If you’ve been a stock picker for 10+ years a small part of you always wonders if the last big win you had was your last. You must not believe that.
With every investment, there are things you can’t control, so you need a plan for reacting to the unexpected.
It's the first 11 years when Monster Beverage was still a microcap that are the most instructive.