How to Find 100 Bagger Stocks? 6-Step Process for Finding the Next Multibagger in Stock Markets
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- Опубліковано 2 чер 2024
- 👉 100 Baggers (book link): amzn.to/4bgjcSY
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In this video, I examine Christopher Mayer's work as explained in his book, "100 Baggers: Stocks That Return 100-to-1 and How to Find Them". Mayer identifies two key drivers for 100-bagger success - earnings growth and an expanding price-earnings multiple which I explain in the video using Hindustan Unilever Limited (HUL) and Reliance Industries as examples.
In essence, Mayer outlines six essential characteristics for identifying future 100-baggers:
1. Starting as small companies with growth potential (sub-10,000 crore company)
2. Possessing a long growth runway for expansion (growth in sales, products, market share)
3. Reinvesting profits for higher returns (return on capital)
4. Establishing a strong economic moat for sustained competitive advantage
5. Maintaining a consistent track record and high gross profit margins
6. Being owner-operator companies with prudent management and capital allocation
A 7th characteristic specific to the investor is patience that is emphasized both in terms of holding onto investments and in diligently seeking the right opportunities. By adhering to disciplined investment strategies and thoroughly researching potential candidates, investors can increase their chances of identifying future multibaggers and significantly enhancing their financial outcomes
👉 I've put together a quick screener that can help you shortlist potential 100-baggers -- www.screener.in/screens/14563...
👉 Video Chapters:
00:00 India's Top Multibagger Stocks of last 20 Years
01:19 100 Baggers by Christopher Mayer
03:31 The Twin Engines of Multibagger Stocks
07:40 1. Small Companies
08:57 2. Long Growth Runway
09:50 3. High Return on Capital
11:15 4. Formidable Economic Moats
12:59 5. Consistent Track Record
13:58 6. Owner-Operators
15:05 7. Patience
16:38 Shankar's Viewpoint
#100baggers #multibagger #multibaggerstock #multibaggerstocks
Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links
“To make money in stocks, you should have the vision to see it, courage to buy it, and patience to hold it”. Very well said! Great learning, as usual!
Thank you. I loved that line aswell
@@shankarnath 3 one is very difficult , patience
99.99 doesn't have that patience
@@shankarnathvery informative video sir....
You not only encourage us to think big but also show possible ways. Kudos to you👏
Glad you find my work useful and informative 🙌
Thanks Shankar, loved the video. One of the best I have seen in the recent past
So nice of you. Glad you liked it
You are the best educator till now for me....
शिष्य बनालो sirji मुझे🙏🏼🙏🏼🙏🏼
Thank you!
This weekend is a different one with an amazing inspiration. Super video. Thank you. 👏🙌
You're so welcome! I'm happy you liked it 🙌
thanks. really enjoyed this video and your explanation
Glad it was helpful!
Love this content... Appreciate 👍
Thank you!
suggestions for buying plz
Thank you!
You're welcome!
Wonderfully Explained & Another Amazing Insightful Video from Shankar sir.
So nice of you. Thanks a ton!
Thank you very much for very insightful video lesson! 👌🏻👍🏻
My pleasure! 🙌
Sir, The way you structure and present the information and your knowledge is excellent as It is easy for anyone to understand
Thank you very much. I am glad you liked it
Thank you Mr Shankar for the wonderful commentary and an insightful video. I have subscribed to your newsletter as well.
Awesome, thank you!
Hat's off sir, as always excellent content!! Thanks and Regards!
Thank you very much. Glad you liked it 🤗
Very impressed with the video content. Thanks and best wishes
Most welcome! 🙌
Thanks for the wonderful content, Shankar sir
My pleasure 🙌
Excellent eye opening presentation…. Patience…. Patience…..patience…. is the key 🔑 🔑 🔑
Thanks for summarising all important points 🙏🙏
Thank you Naveen ji
👍, very insightful video, commendable work from you, thank you so much.
My pleasure! Glad you liked it
I am writing this before watching this video, but I have seen your 'shamelessly cpying' videos. i have found you exceptional among the youtubers who speak on investment. I can't stand those self styled experts who advise you to buy their recommended 5 shares and live happily ever after. The copying video made me bow my head to the hard work you had put in.
Wish you the best.
Thank you so much Mukesh ji. I am glad you like my work and is offering you ideas on how you can shape your own investing portfolio.
You & I are DIY investors and it's natural for us to have an aversion to stock tips/intraday calls etc. But I guess, everyone has a place in the world incl. the 5-share recommenders. It's like that Chinese proverb -- don't use a cannon to kill a mosquito. But what if the mosquito is the size of an elephant :) .. different strokes for different folks.
I like your explanation, theoretical and also practical aspects of stock market. And also very much different than other youtubers. Thanks
I appreciate that! Thank you
Thank you shankarnath for delivering a high quality insightful video. I noticed that the screener you had posted had missing owner-operator filter. I am not sure if screener supports it. Do you have any pointers on how we can find out owners-operator company? Thank you
Most welcome. I used "promoter" in the screener .. a promoter is mostly the owner-operator esp. for smaller companies
Shankar Sir, I really appreciate your style of delivery. After watching your videos, I am changing myself from a swing strategy investor to a investor. Your information is lean, clean and crisp.
I would like to say a big thank you to you and your team
I appreciate that! Happy to know that you're finding my work useful and you're seeing the advantage to picking companies, let them do all the hardwork and grow your money.
As always very useful content, presented with lot of clarity and key takeaways.
Thank you very much 🙌
You saved my time sir . Lots of love and appreciation for quality content
Happy to help 🙌
Good info. Thanks Shankar
My pleasure
Sirji.... Good content... Tk u.... Hv a great weekend 👏👍😍
So nice of you. You too
Always great video ❤
Thank you!
Thank you very much
Most welcome 🙌
You are quite remarkable, thanks for the knowledge sharing 🙏
Most welcome. I appreciate that! 🙌
Thank you.
Welcome!
Great video.
Thanks!
Thank you for the video, your explanation and tips are very very useful
Glad it was helpful!
Very well explained
Thanks for liking
I learn something for sure from your video. I like your passion about video content🎉
Glad to hear it!
Best explanation about multi bagger stocks
Glad you liked it
Superb session sir..🙏
Thanks a ton
Brilliant Video sir
Many thanks
As always your content is crisp and easy to understand. Makes me want to listen more. Great work!
Awesome, thank you!
Thank you Sir, I learn so many things every time I see your video..
Most welcome. Glad to hear that 🙌
Another beautiful video and a Sunday morning well spent. Thank you Shankar.
So nice of you. Have a pleasant day ahead!
Thankyou very much sir🙏
Most welcome
Thanks a lot for making very useful video on long term investing and finding 100 beggars.
Most welcome.
Great knowledge u have 👍
Thanks a lot
Sir, your content is always great thank you so much
So nice of you. Thank you
Shankar Sir, you are truly awesome. I get so inspired listening to your videos and you really make my day. I am 45 years old and I wish and hope you will be guiding us over next 25 to 30 yrs so we can grow as well.
Thank you so much Shankar Sir.
I'll try my best. Thank you very much for your continued support and encouragement 🙌
Namashkar. It is extremely difficult for most of us to hold on to a given list of stocks for 25 long years with a fond hope atleast some of them become multibaggers ie which generate CAGR 20% over 25 years , on an average. I have an alternative for your kind consideration. 1. Identify 10 stocks in each quarter which could together deliver atleast 8% RoI in a quarter and invest certain sum X. 2. Sell them in 2nd quarter, book profit and reinvest the amount X in the 3rd quarter. 3. Invest similar amount X in 2nd quarter and sell in 3rd quarter and repeat the process. After considering brokerage and income tax, uncertain returns, we will get not less than 20% per annum. ( i know your immediate question will be how to identify stocks that deliver at least 8% in each quarter . This may be far more simpler and less tension ridden than holding 20 stocks for 25 years with a hope some of them will become multibaggers!)
In my opinion this approach too would not be easier either, the moment we fail to reach the target for continuously 2 quarters. As he pointed a key ingridient required is "Inaction" after identifying probable companies and doing due deligence.
Secondly, The quantum of investment should also be meaningful enough otherwise even 100 x will not inspire to hold the stocks for so long. Example if we allocate 1 lakh each in 10 stocks and 1 stock reaches to become 100 L after 20 years , post inflation (approx 7%) it would be today's 25 Lakh. and remaing 9 will add up to some more, lets say they all sum up to another 100 L , so total wd be post inflation 50 L .....It may not be inspiring enough . Stock market stories are mostly good as stories only for a common investor. need a great deal of luck here.
Thanks for this approach. Since the problem is around "patience", perhaps these steps can be tried instead:
1. Buy 15-20 quality stocks using a 2nd brokerage account I don't use
2. Tell my spouse or parents to change the password immediately
This way I cannot access the brokerage again, only they can. Problem solved
This idea is not scalable. I can do it for 1 crore but hard to do same when i have 10 crore
@@sohilparikh32: We are small people , Rs 10 lakhs itself is a huge sum. If we can find a suitable means to identify stocks to give an RoI of 20% per annum, we shall have Rs2 lakhs in our hands !!
@sohilparikh32 You wouldn't be here if you had 10 Crores. Lol
Who else can make such a valuable videos for investors knowledge, it’s none other than Shankar Nath!! Thanks for another amazing video, Shankar.!!
I appreciate that! Thank you
Any examples of screens that one can use to filter some of the tangible characteristics?
I have given one screener in the video's description already
Wonderful video 📸
Thank you very much!
From ur intense knowledge, can u suggest only one 100 bagger name for next 20 years
Pidilite industries
It's our knowledge and patience, not only 100 or 1000 bagger, but there is no limit for it
Maybe much better than 1:45 Berkshire Hathaway
😂
Excellent Lerning with you. You are Good at it, can you suggest a Screener / Scanner for this
.
Thanks. A screener is already available in this video's description
Thank you sir 👍🙏
Most welcome
Not sure how many remember a popular two wheeler’s tag line: “Fill it, shut it, forget it!”, I guess this can be tweaked a bit: “research it, buy it, forget it!”.
Close enough. Hamara Bagag(r)!
hi Sir, I've recently subscribed your website. Just wondering, how to get access to previous newsletter?
Hi. You would have received a welcome letter on email. There would be line there that reads "For previous issues". Pls click on that hyperlink.
Thanks
Welcome! 🙌
My grandfather owns UPL stock, when he knew the company's founder in the 90s. Don't know how many shares he owns though.
Excellent👌❤
Thanks a lot 😊
Sir, pls let us know the Best Balanced Advantage Fund.
Wonderful work Shankar, can you also make a video on which are the best sites to gather data from for an in depth analysis
Thanks for the suggestion, I'll try
Excellent presentation. Your detailed research and explanation helps a lot. Thanks much. ❤
You are so welcome!
Sir, How to keep track of the exact profit in Zerodha? For Ex - If initially I invested 10000, and sold it at a loss of 2000, and again invested 8000. Now if current value becomes 12000. It will show profit of 4000. But, in actuality it is 2000 (on 10000 invested initially). So, how to know actual profit on money added from the BANK (Net profit on Input , considering all types of losses, charges, etc)
Maintain a manual Excel sheet stock wise
"You only have to be right once to make it big" .
You are such a great speaker..
I am 24 year old doing internship as a doctor
I have been investing in small cap funds for over a year now .
I do wish learn to acquire a skill of picking stocks i did buy tata moter when it was around 630..
So tell me where can i start to learn about picking stocks or learn to pick good stocks any book or video recommendations will be really helpful sir
Thank you. You can start here: Here's a great place to start: www.austinvaluecapital.com/resources.html? .. this link has many downloads/links which'll give you great insights on investing and stock-picking
Excellent video. Thank you
Most welcome. Glad you liked it
Sir can you suggest me some good books on price action/technical analysis and what is the best book for understanding fundamentals of a company according to you ??
Sorry, I don't read books anymore so a bit out of touch. For investing reading material, explore the links inside: www.austinvaluecapital.com/resources.html?
Hi shankar great content as always.can you please make a video of PSB stocks and future of PSBs is it wise to stay invested ?
Thanks for the suggestion
Great 👍
Thx
Thanks for best content again sir. Can you post video on how to find sectoral mutual funds that are undervalued and time to entry and exit
Thanks for the suggestion. Pls refer to related content on ua-cam.com/video/mTXkio4dE0Y/v-deo.html
It's not easy to stay invested in individual stocks for a very very long term unless you don't care about that money invested or FOC of stocks.
As always love the channel
Absolutely, nothing is easy to repeat over 20 years until it becomes a habit.
Yes exactly.. retail investors don't have money that we can invest and forget as a lump sum.. even if we invest 1 lakh in 20 stocks each it would become 1 cr in 25-30 years and 1 cr imo will be worth much less after 30 years..
Nice video
Thanks
How can we have access to newsletter
The link is mentioned in the video and also in description of this video
True
Gr8 video. Crisp and to the point. It would be of gr8 help if you could make a similar one for Mutual Funds. Thanks.
Thanks for the suggestion
Remarkable video backed by research and data. No other channel comprehends the information like this one...
Thank you very much 🙌
When i buy a stock it start downfall... not sure where i am mistaking
Master class
Thx!
Sir request ur view on mtar technology post q3 results. Still can we consider this for investment or not
Hello Shankar, I found a bit of a contradiction in this video. At one stage you mention that a smaller company is more likely to be a multi-bagger than a large company (like HDFC Bank), and later in the video you mention that compaines that have been doing well and have built a large base are more likely to continue growing and should be preferred (in my mind companies like Asian Paints, Pidilite etc. came to mind). So what exactly are we looking for?
Hello. I hope you're not bracketing a smallcap company as 1. not doing well & 2. doesn't have a large base. I say so because while you've mentioned companies like Asian Paints and Pidilite, one should also include players like Electrosteel Casting, Praj Industries, HG Infra Engineering, Kirloskar Industries etc. which are all smallcap cos. but have sales of 1000+ crs, have been growing sales & profits at 20%+ and make sufficient profit (200+ crs). This is exactly what I'm looking for.
Thanks, Shankar. This gives me food for thought. Though I would not consider small cap as not doing well, but definitely did not think of them as having a large base. I had not considered these companies.
How to subscribe to your newsletter ?
Pls click on the link in this video's description and follow instructions there
@@shankarnath❤
How do you know when a small-cap company has a moat?
I've briefly explained different types of moats in the video. For more info (and a very long read), please access: media.licdn.com/dms/document/media/D561FAQHYmOGK2ZZn6g/feedshare-document-pdf-analyzed/0/1705918630265?e=1707350400&v=beta&t=yagBHMKvGQFt2RXF2MbTwaxiY9z3AF9tuTVS4ZwGFEU
Shankar Sir ...
I follow u since U were with ET Money.... I like the way you analyse And Give Information.....
I have a Request.....
Please do a Comparison Video on 2 Smart Beta Funds....
Momentum 30 Vs Nifty Alpha 50
Thanks for the suggestion
Is gross profit margin same as net profit margin
No, not the same
What is MOAT ?
Earlier when the king used to stay in the castle they dig surroundings and filled it with water so that no one could enter the castle. Hope you got it.
Best is to just put the money in small cap and mid cap funds.
It's unfortunate that the structure of mid cap and small cap funds makes it a bit difficult for the fund to retain winners. As a result, the 100-bagger status will take a longer now to achieve within these funds .. but yes, it's still a way of going about it.
Personally, I prefer picking a set of 15-20 quality small & mid cap stocks (some I have featured in the newsletter) and there's even a mathematical reason for this.
So, let's take a fairly aggressive number. Say, a mid or smallcap fund is expected to deliver 18% p.a. over the long run. Which means the fund will become a 100-bagger in 28 years from today.
On the other hand, say you've watched my "How to Find 100-Bagger Stock" video, done your homework and you settle for a high conviction portfolio of 20 stocks. Now, if only 2 of these 20 stocks become multibaggers (i.e. their stock price grows by 30% p.a.) and even if the other 18 stocks go to zero -- still the corpus at the end of 28 years will be 50% higher than the mutual fund construct
Ofcourse, this is easier said than done but by gaining the right knowledge & working hard, I don't see why 1 out of 10 high-conviction bets won't become a multibagger. As I said in the video - everyone deserves atleast one 100x in their lifetime. I would go on to say, everyone can even make a 1000x in their lifetime.
@@shankarnath Sir is there any way to passively track multibagger stocks ?
We know small cap moves to midcap and midcap moves to largecap by becoming bigger and bigger
But holding company with long term only create wealth
Is there any passive way of it ?
We might find stocks but as an individual investor conviction over any company is not so solid so holding becomes too hard can u help us in this situation ?
Extremely good content. 🎉❤
Thank you 🙌
How to find a good small cap stock sir.
Please review my previous videos. Lots of material on the query you have raised.
The single biggest quality is "Patience". There are quite a few instances of grandsons finding out some shares purchased & held by their grandfathers which have become 100 baggers just because it got lost amongst the pile of old papers that they inherited.
Excellent video
Sir next video on auto sector analysis
Thanks for the suggestion
❤❤
🙏🙏🙏
👍🏻
I wish you were a stock, i would have invested in you😅
Ha ha .. thanks!
Sorry to say this and also i might look bit harsh for conservative long term investors but the reality is you can't grow multibagger stocks if you're not financially freedom, long-term holding is only for those who are comfortable in their life but for most of the retailers i think they should find some good strategies in investments according to their psychology and earn the returns in fast pace, my suggestion don't believe in luck but learn the momentum patterns and reading the balance sheets, believe me you'll be free from your financial shcakels in no time.
hi sir pls make video about smallcap 250 quality 50,smallcap momentum quality 100, midsmall momentum quality 100..thanks 🙏
Thanks for the suggestion
Sir please start a company, will deposit 10 lakhs 😃
Thanks for the suggestion
mine was tejas network from 70 to 680 , i had 30 quantities
I am a retiree. I subscribed to the primary IPO issue of HDFC Bank in 1994. I applied because I knew the reputation of HDFC group who was a leading institution for house loans. I didn’t do any other research then. I am still holding it including all the subsequent splits and bonuses. HDFC Bank became a multi bagger.
Sometimes it is by mere chance or stroke of luck that you get a multi bagger.
Its possible easily by finding stories in microcap , penny stock & 2X within 6 month to one year
What if ROCE and ROE is above 20 but EPS growth is less than 5% ??
Welcome aboard! Hope you find the newsletter useful
There are so much more than one is missing like samvardhan motherson and tcs etc!