I own 7 stocks that are 15+ baggers (and counting)

Here are 10 traits they all have in common:

The data:

Stock / # of bags / purchase year:

$AMZN / 15+ / 2010
$FB / 15+ / 2012
$GOOG / 15+ / 2009
$MELI / 15+ / 2011
$CMG / 20+ / 2012
$NFLX / 60+ / 2010
$TSLA / 60+ / 2012
1: Founder-led

$AMZN - Bezos
$CMG - Ells
$FB- Zuck
$GOOG - Page
$MELI- Galperin
$NFLX - Hastings
$TSLA - Musk

Founders tend to be:
+Detail oriented
+Innovative
+Mission driven
+Think long-term
+Have skin/soul in the game

Look for founders!
2: Consumer-facing

All of these companies attract millions/billions of consumers

This eliminates customer concentration risk and enables long-term brand building
3: High sales growth

All of these companies were growing revenue 20%+ BEFORE I bought them

Sales growth is the engine that drives profit growth

Profit growth is the engine that drives stock appreciation

Find companies that can grow sales 20%+ for decades
4: Word of mouth advertising

The best advertising is no advertising

Invest in companies that make products/services that are so good that their customers do all the marketing
5: Category Mindshare

▪️Name an electric car company
▪️Name a search engine
▪️Name a streaming service

The odds are good that you said Tesla, Google, Netflix

Find companies that grab all of the mindshare in an important, emerging market
6: Pricing Power

▪️If $AMZN raised prices, would you notice?
▪️If $CMG raised prices, would you notice?
▪️If $NFLX raised prices, would you cancel?

Find companies that create so much value that they can raise prices and not lose customers
7: Optionality

$AMZN Bookseller ➡️ AWS / Everything Store
$MELI eBay of Latin America ➡️ PayPal of LatAm
$NFLX DVD-by-mail ➡️ Streaming
$TSLA Sports cars ➡️ Energy Storage

Look for companies with innovation & experimentation built into their DNA
8: Massive opportunity

▪️Facebook wants to connect the world
▪️Netflix wants to entertain the world
▪️Tesla wants the world to switch to sustainable transport

All of these opportunities are measured in the hundreds of billions (if not trillions)
9: Widening Moat

All of these companies widened their moat over time

Moat sources:
▪️Network Effect
▪️Switching Costs
▪️Low-cost production
▪️Brand

Look for companies that are building a lasting competitive advantage
10: Distinctive cultures

▪️ $NFLX 125-slide culture presentation

▪️ $TSLA attracts people who believe deeply in Tesla’s mission

▪️ $AMZN culture celebrates experimentation

Great cultures attract great employees

Find cultures that stand out!
Important:

To earn multi-bagger returns I had to hold through:

▪️50%+ declines
▪️Short-seller reports
▪️Public Relations fiascos

If my behavior was wrong, I wouldn’t have earned multi-baggers

This is why I always:
Interestingly, aside from $MELI, none of these stocks were “hidden”

I had heard of:
▪️Amazon
▪️Chipotle
▪️Facebook
▪️Google
▪️Netflix
▪️Tesla

YEARS before I became a shareholder

Sometimes, great investments are obvious
What company checks all of these boxes today?

One idea: Peloton $PTON

(All the details can be found in my most recent YouTube video)

https://t.co/wFMwTR292X
Want to screen for these traits?

All of them are covered in my investing checklist

You can download a free copy of it here: https://t.co/HI5T9wZgbw
Enjoy this thread?

Follow me @brianferoldi

You may enjoy all of my other threads on money, investing, & self-improvement

https://t.co/9zUKu1NhAl
Summary:

1: Founder-led
2: Consumer-facing
3: High sales growth
4: Word of mouth
5: Mindshare
6: Pricing Power
7: Optionality
8: Huge TAM
9: Widening Moat
10: Distinctive cultures

More from Brian Feroldi

More from Business

The American business community is speaking with a unified voice - NAM called to invoke the 25th Amendment; the Business Roundtable and Chambers of Commerce urge a peaceful transition of power; all have denounced last week's violence. What might this mean? A few implications:
1/

This isn't just PR - bad politics is bad for business. Here, the Harvard Business Review makes the business case for democracy (leading essay by

Historically, business has been a crucial ally for democracy. Mark Mizruchi shows how business helped secure democracy after WII, through organizations like the Committee for Economic Development (see also his @NiskanenCenter paper:
https://t.co/xoqUUN1nCD)

3/

My book examines how business groups formed to lobby against patronage and corruption, and in favor of institutional reform, in the 19th c. (https://t.co/FnNhZUupBG)

For a summary of business’s role in American democracy over the 20th century, see

Today, corporations are cutting off PAC $$ — Wall St banks (JPMorgan Chase, Goldman Sachs, CitiGroup), big tech (Microsoft, Facebook). Many more corps have suspended donations to members of Congress who contested the certification of election results last week
5/
There are so many #HotTakes on the future of news and tech and digital this week. Now nearly half a year distant (and what a year - 2020, ugh!) from CEO and board @mcclatchy, I'd like to add a few thoughts: 1/


As @jbenton said in @NiemanReports : @mcclatchy transformation shows it STILL is possible NOW 'to be operationally profitable while still doing good journalism.' Not easy; Covid made it harder. But POSSIBLE and DONE by the great team in 2020 @mcclatchy. 2/

As @jbenton wrote: the #DIGITALTRANSFORMATION @mcclatchy 'shows a company that has managed the digital transition better than most; at last public count, it was making nearly half its ad revenue in digital and digital subscriptions were up 45% year-over-year.' Such focus 3/

On the future is digital is the SOLE way the still-powerful brands of local news and information will be able to have a business in the inevitable 'printless' future (Not today, not tomorrow, but printless someday) 4/

And the crisis in local news is relentless, unabating and by most measures WORSENING. More titles going dark; huge losses to our communities, because solely a blend of new digital startups AND existing footprint offer the scale 5/

You May Also Like

#தினம்_ஒரு_திருவாசகம்
தொல்லை இரும்பிறவிச் சூழும் தளை நீக்கி
அல்லல் அறுத்து ஆனந்தம் ஆக்கியதே – எல்லை
மருவா நெறியளிக்கும் வாதவூர் எங்கோன்
திருவாசகம் என்னும் தேன்

பொருள்:
1.எப்போது ஆரம்பித்தது என அறியப்படமுடியாத தொலை காலமாக (தொல்லை)

2. இருந்து வரும் (இரும்)


3.பிறவிப் பயணத்திலே ஆழ்த்துகின்ற (பிறவி சூழும்)

4.அறியாமையாகிய இடரை (தளை)

5.அகற்றி (நீக்கி),

6.அதன் விளைவால் சுகதுக்கமெனும் துயரங்கள் விலக (அல்லல் அறுத்து),

7.முழுநிறைவாய்த் தன்னுளே இறைவனை உணர்த்துவதே (ஆனந்த மாக்கியதே),

8.பிறந்து இறக்கும் காலவெளிகளில் (எல்லை)

9.பிணைக்காமல் (மருவா)

10.காக்கும் மெய்யறிவினைத் தருகின்ற (நெறியளிக்கும்),

11.என் தலைவனான மாணிக்க வாசகரின் (வாதவூரெங்கோன்)

12.திருவாசகம் எனும் தேன் (திருவா சகமென்னுந் தேன்)

முதல்வரி: பிறவி என்பது முன்வினை விதையால் முளைப்பதோர் பெருமரம். அந்த ‘முன்வினை’ எங்கு ஆரம்பித்தது எனச் சொல்ல இயலாது. ஆனால் ‘அறியாமை’ ஒன்றே ஆசைக்கும்,, அச்சத்துக்கும் காரணம் என்பதால், அவையே வினைகளை விளைவிப்பன என்பதால், தொடர்ந்து வரும் பிறவிகளுக்கு, ‘அறியாமையே’ காரணம்

அறியாமைக்கு ஆரம்பம் கிடையாது. நமக்கு ஒரு பொருளைப் பற்றிய அறிவு எப்போதிருந்து இல்லை? அதைச் சொல்ல முடியாது. அதனாலேதான் முதலடியில், ஆரம்பமில்லாத அஞ்ஞானத்தை பிறவிகளுக்குக் காரணமாகச் சொல்லியது. ஆனால் அறியாமை, அறிவின் எழுச்சியால், அப்போதே முடிந்து விடும்.
🌺कैसे बने गरुड़ भगवान विष्णु के वाहन और क्यों दो भागों में फटी होती है नागों की जिह्वा🌺

महर्षि कश्यप की तेरह पत्नियां थीं।लेकिन विनता व कद्रु नामक अपनी दो पत्नियों से उन्हे विशेष लगाव था।एक दिन महर्षि आनन्दभाव में बैठे थे कि तभी वे दोनों उनके समीप आकर उनके पैर दबाने लगी।


प्रसन्न होकर महर्षि कश्यप बोले,"मुझे तुम दोनों से विशेष लगाव है, इसलिए यदि तुम्हारी कोई विशेष इच्छा हो तो मुझे बताओ। मैं उसे अवश्य पूरा करूंगा ।"

कद्रू बोली,"स्वामी! मेरी इच्छा है कि मैं हज़ार पुत्रों की मां बनूंगी।"
विनता बोली,"स्वामी! मुझे केवल एक पुत्र की मां बनना है जो इतना बलवान हो की कद्रू के हज़ार पुत्रों पर भारी पड़े।"
महर्षि बोले,"शीघ्र ही मैं यज्ञ करूंगा और यज्ञ के उपरांत तुम दोनो की इच्छाएं अवश्य पूर्ण होंगी"।


महर्षि ने यज्ञ किया,विनता व कद्रू को आशीर्वाद देकर तपस्या करने चले गए। कुछ काल पश्चात कद्रू ने हज़ार अंडों से काले सर्पों को जन्म दिया व विनता ने एक अंडे से तेजस्वी बालक को जन्म दिया जिसका नाम गरूड़ रखा।जैसे जैसे समय बीता गरुड़ बलवान होता गया और कद्रू के पुत्रों पर भारी पड़ने लगा


परिणामस्वरूप दिन प्रतिदिन कद्रू व विनता के सम्बंधों में कटुता बढ़ती गयी।एकदिन जब दोनो भ्रमण कर रहीं थी तब कद्रू ने दूर खड़े सफेद घोड़े को देख कर कहा,"बता सकती हो विनता!दूर खड़ा वो घोड़ा किस रंग का है?"
विनता बोली,"सफेद रंग का"।
तो कद्रू बोली,"शर्त लगाती हो? इसकी पूँछ तो काली है"।