This week, Mike sits down with Neeraj Khemlani and Matthew Ankrom, the minds behind The Coffee Can Investor, to discuss one of our favorite investing topics: finding and holding stocks capable of returning 100x.
We open with Neeraj and Matthew walking us through the story behind the "coffee can" strategy. Inspired by an old investing experiment, Matt set out to build the ultimate long-term portfolio for his three daughters, a collection of businesses he hopes could one day be worth hundreds of millions of dollars. But what exactly makes a 100-bagger?
Drawing on years of research, Matt explains the common traits shared by some of the greatest stock market winners of the last half-century. His research found that many were founder-led, generated recurring revenue, operated in seemingly boring industries, and consistently reinvested capital at high rates for decades.
The vast majority weren't flashy consumer brands or cutting-edge tech companies. Instead, many were business-to-business operators providing mission-critical products and services, think nuts and bolts, seals and gaskets, and industrial supplies.
Of course, finding a 100-bagger is only half the battle. Holding one is much harder.
The average 100-bagger endured drawdowns of roughly 70% on its journey, giving retail investors an edge. Unlike professional fund managers, individual investors aren't forced to think in quarters or even years, they can think in decades.
We also discuss the mathematics of compounding, why exponential growth is so difficult for humans to grasp, and how even Warren Buffett accumulated the vast majority of his wealth later in life.
Finally, Matt shares one of his favorite potential future 100-baggers: TechnologyOne (ASX: TNE), an Australian software business quietly embedding itself into the daily operations of universities and local governments while investing heavily in AI-powered products.
Psssst…. We don’t think you’ll want to miss this year’s Investicon. Grab your early bird tickets now: https://www.investicon.ie/
Prophet, MyWallSt's latest investing service, is focused on delivering market-beating in less than 5 minutes a month.
Click here to join now or email frank@mywallst.com for a deal.
Become a successful investor by checking out all the content MyWallSt has to offer:
📩 Email us: pod@mywallst.com
📚 Learn the fundamentals of investing by downloading our free Learn app: https://bit.ly/3DXPOz7
💻 Keep updated on stock market news by visiting our blog: https://mywallst.com/blog/
🎧 Tune in to our podcast Stock Club to stay updated on weekly news: https://mywallst.com/stock-investment-podcast/
🎉 Follow MyWallSt on social:
❌ X: @MyWallStHQ
💃 TikTok: @MyWallSt
📸 Instagram: @MyWallSt
🖥️ Facebook: @MyWallSt
👔 LinkedIn: MyWallSt
00:00 Intro
01:17 Coffee can origin story
05:28 Identifying hundred baggers
13:35 Holding through drawdowns
24:49 Retail investors hidden benefit
30:56 Investicon
33:07 Finding 100-baggers in the current market
35:50 Matt’s favorite 100-bagger
45:15 Why write The Coffee Can Investor
48:34 Building a financial legacy
