100-fold stocks present the principle of choosing

2024. 8. 15. 05:19U.S. Economic Stock Market Outlook

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100-fold stocks present the principle of choosing stocks that will grow significantly over a long period of time.

*the author's introduction
the core principles of 100-fold stock
1. High Return on Capital (ROE), 2. Continuous Reinvestment of Profits

*Key Features Of 100-X Stock
1. strong growth
2. Low stock price multiplication (in some cases, PEG should be utilized)
3. on a relatively small scale
4. Economic movers (must carry out business continuously for a long time)
5. Owners directly manage

*What is a 100-fold stock?

The problem is investment opportunities. You should try to find new ways, new materials, and new products.

Anyone should know that they can invest in 100x stocks.

After you identify the commonalities of good stocks and have confidence through sufficient research, you should buy and hold them as they are.
100-fold stocks should be approached in terms of the results of finding and holding good companies for a long time, not targets.

*a portfolio of coffee cans

You should know that many stocks that have greatly increased in value have experienced a terrifying decline.

Patience and a handful of well-known stocks and luck are needed. A strategy of staying with a company that has been proven to some extent gives a big return.

*the law of 100-fold stocks

The strongest stock price movements tend to appear intensively when the PER expands with increasing profits. There is a big opportunity for companies that turn into the black after years of losses.

It should be cheap, cash-generating, and open to expansion.

*SQGLP: Smaller in size, high quality of business and management, high profit growth, long-lasting, favorable prices are key points.

You need to look to the future in order to discover 100x stocks. You need to train your mindset to think about the size of your company today and the size you expect to see in the future.

It can be said to be a reasonable payment price only when the growth rate is similar to that of PER. The most important point is that the return on capital is extremely important.

*the key to a 100-fold stock

Over time, stock returns and ROE match very well.

To have an above-average growth rate, you need to have a sustainable competitive advantage. These stocks generate high ROEs.

*The second is the management's capital allocation technology.

Invest with the owner-manager, or those who already have a lot of stocks they want to buy.

Looking at the final result, shareholders had better results when they were with a company run by the owner.

Wealth produces wealth. Behind the best stocks for the past 50 years, there was a key person like him. Rich people have strong connections and use them for business.

*the actions of an accomplished CEO

Avoid dividends, take careful acquisitions, selectively leverage, acquire treasury stocks, minimize taxes, run distributed organizations, focus on cash flow

True wealth comes from owning, running and building a business and committing to it for a long period of time.

*How much should I invest in? (portfolio weighting)

Kelly's formula: Bet big on the best ideas. (More than 40% is too much.)

Many of the 100x shares were greedy to buy their own shares when they were cheaply available on the market.

*Various Psychological Conditions For 100-X Stocks

Finding 100x shares means I won't care what the government does.

Looking for a 100x stock means looking at a chart that looks good and not buying it.

Investing in a 100-fold stock means standing firm on the floor and holding out.

*precautionary measures

1. The best thing to do is invest in management who have a lot of stock.
2. Partner with someone who has experienced success.
3. Invest in an understandable enterprise.
4. Avoid overheated industries in any market.

The best ideas are usually the simplest.

An ideal business in times of inflation is one that can easily raise prices and does not require much investment in assets.

Stocks with an ROE of more than 20% do not fail well. Stocks that do not go out of business eventually recover.

My goal is to buy satisfactory stocks with assets and underlying profitability at below market prices. _ Keynes

*a 100-fold stock settlement

There is a need for a company with a high return on capital and the ability to reinvest and produce a high return on capital again for several years.

*The PEG ratio is also very important.

A strategy that works for most people is investing in a great company and holding it for a long time.

*We should focus on companies, not on stock prices or short-term noise.

Let's keep in mind that even the greatest companies have experienced tremendous declines many times.

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