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Book Summary of 100 Baggers: Stocks That Return 100-to-1 and How To Find Them by Christopher W Mayer

What if you could invest in a stock that would return 100 times your initial investment? Sounds too good to be true, right? But such stocks do exist, and they are called 100 baggers. In this book, Christopher W Mayer reveals the secrets of finding and holding these rare gems that can make you rich.


Mayer draws on the research of Thomas Phelps, who wrote a classic book on 100 baggers in 1972. Phelps analyzed the performance of over 365 stocks that returned 100-to-1 or more from 1932 to 1971. He found that these stocks had some common characteristics, such as strong earnings growth, low valuation, high return on equity, and a competitive advantage in their industry.


Mayer updates and expands on Phelps' work by studying the 100 baggers of the last 50 years. He identifies the key factors that drive these extraordinary returns, such as innovation, scalability, owner-operators, and capital efficiency. He also shares the stories of some of the most successful 100 baggers, such as Monster Beverage, Apple, Amazon, and Netflix.


Mayer's book is not a get-rich-quick scheme or a formula for picking stocks. Rather, it is a guide for long-term investors who want to learn how to spot and hold onto great businesses that can compound their wealth over time. He shows that finding 100 baggers is not impossible, but it requires patience, discipline, and a contrarian mindset. He also warns that 100 baggers are not risk-free, and that investors should be prepared for volatility and drawdowns along the way.


The book is a must-read for anyone who wants to achieve extraordinary returns in the stock market. It will inspire you to think big and act boldly, while also teaching you the principles of sound investing. By following Mayer's advice, you may not find a 100 bagger every time, but you will increase your chances of finding one someday.

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