Only 30 Stocks Generate 43% of Market Gains
From Hendrik Bessembinder's updated report: Only 30 stocks (out of 29,000) have produced 43% of wealth creation since 1926 Some will say this is why you just buy a market cap weighted momentum index like the S&P. I would say it proves the stock market is for stock picking and buy and hold forever is probably the most difficult game in town regardless of how simple and cerebral it all sounds.
Insights From Stock Market Maestros Authors Revealed
In this conversation, @Valuehunte and I sit down with Lee Freeman-Shor and Clare Flynn Levy to talk about their new book, Stock Market Maestros. I really enjoyed this conversation. https://t.co/Qzkn4Pmzg8
True Quality Takes Decades, Not One-Year Gains
Most investors definition of a quality business or quality management has nothing to do with quality - it’s simply the stock they own that is up the most in the last 12-months. Quality is a label that can only be earned...
Gold: The Risk‑Free Reserve Asset No Forecast Needed
A good interview we did 18 months ago with Anthony Deden: "The reason we own gold as a reserve asset is rooted in something fundamental. What makes gold compelling are the risks we do not take by owning it. No...
Great Investors Thrive on Opposing Strategies
New Article - Find Your Swing Warren Buffett invests his way while Walter Schloss did it another way. Carl Ichan does it his way while Peter Lynch did it another way. David Tepper does it his way while Marc Andreessen does...
Patience Pays: Years of Average Returns Can Yield Sudden Wealth
The hardest part of achieving a great long-term investment track record is over half the time your returns will look average. You can go years where it feels like you are working hard for mediocre returns. Then all of a...
Profitable, Non‑diluting Growth Beats Early Hype
Don’t worry if no one likes your investment idea. If the company is profitable and growing and not diluting the crowd will eventually come back to it.
Watchlists Become Excuses, Not Buying Opportunities
When a stock you own drops 25% it's an "opportunity". When it drops 10% more you call the CEO to verify the thesis and buy more. When it drops 10% more you get annoyed insiders aren't buying. When it drops...
Microcaps Double, Triple, Then Plunge—Sell Aggressively
Microcaps vs larger caps are two different animals. When a microcap goes up 2x and 3x in a 12-month period the median peak to trough drawdown is 58% and 68%. When an S&P 500 stock goes up 2x or 3x in a...
Obsessive Intensity Separates Mission From Mere Career
You can't teach intensity and hustle. You're either 24/7 obsessed with solving a problem, making an impact, reaching a goal or you're not. It's also the difference between a career and a mission.
Sahara’s “Mountain of Hell” Hides Giant Marine Fossils
During the winter of 1902, H.J.L. Beadnell was a geologist working for the Geological Survey of Egypt. He was doing the unglamorous work of surveying the topography of the Sahara Desert. One day he was far from civilization. He was two hundred miles southwest of...
Most Claim They'll Buy the Dip, but Can't Afford It
Everyone says they are ready for a correction. Some even say they want a correction. Very few will have the stomach or the cash to follow through on their intentions and buy when others are selling. It can happen over weeks, months,...
Embrace Short-Term Discomfort, Win Long-Term Gains
I think about this Lou Brock quote a lot and how it relates to investing. The willingness to look wrong in the short-term to be right in the long-term. "Show me a guy who's afraid to look bad, and I'll...
Microcaps Rarely Achieve 26x Revenue, 173x NIAT Growth
A great slide Over 16 years.. Revenue 26x NIAT 173x F/D Shares -17% 99.9% of microcaps couldn't have a slide like this $RX.V $BIOYF https://t.co/Sw0gquHq8o
Even Top Managers Struggle to Sell Losers
During the conversation today with Lee Freeman-Shor and Clare Flynn Levy who have analyzed the trade data of many of the best fund managers in the world - I asked what decision type do successful managers have the most issues...
Rising Oil Prices Pressure Mining Earnings Through 2026
To help mining investors understand the impact of rising oil prices as miners report 2025 results and thinking about 2026 results...
Microcap Success: Rare, Unpredictable, Right Time, Right Place
It’s always been amazing to me how you can have 10 microcaps in the portfolio with a similar positive fundamental/solid management setup over the next two years. You think they can 2-3x. A few will and several won’t quite make...
Premium Valuations Possible Even for Commodity Sellers
I wrote this article a couple years ago before resources went on a tear, but I still like to look at cyclical or hated industries through this lens. How does a business get a premium valuation when they sell a...
Big Positions Blur Reality—Stay Rational, Stay Grounded
The biggest issue with holding big positions (winners and losers) is when you lose your rationality. You only see what you want to see or hope the business to be, not what it actually is. You must always stay anchored...
Big Gains Come From Rare Deep Market Corrections
Since 1950, the average drawdown in the S&P 500 has been 14% in a calendar year, and drawdowns of at least 10% have occurred in 37 of the past 75 years. 20%+ corrections have occurred in 11 out of the past...
Invest by Following Crowds Selectively, Seek Misunderstood Resilient Niches
As Charles Mackay observed in 1841, "Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one." We are social creatures whose...
Buy on Earnings Surprises, Sell Within 15 Months
I love when stock pickers have very disciplined unique strategies like Josh Goldberg. He only buys after earnings surprises and doesn't hold longer than 15-months. From the book, Stock Market Maestros
Fundamentals Sustain Success, Not Just Hype
A mentor I had 20 years ago would say, “You might be able to pump them up, but fundamentals have to keep them up.”
Freeman-Shor and Levy Release New Must-Read Stock Picking Guide
Lee Freeman-Shor and Clare Flynn Levy team up to write another great book for stock pickers. Sample chapter in the post 👇👇 https://t.co/T2sOEitRVD
Critics Are Those Doing Less, Not More
"You'll never be criticized by someone who is doing more than you. You'll always be criticized by someone doing less. Remember that." - Denzel Washington
Fortunes Grow in the Quiet Gap Before Validation
Most investors won't like your investment idea until after it doubles, which means validation comes long after you've purchased and borne the burden of being alone in your conviction. The gap between purchase and recognition is where fortunes are built...
Market Tricks Beginners: Luck Isn't Skill, Double‑Down Costs
The greatest trick the market plays on beginners is making you think luck is skill. It waits for you to double or triple down on your next bet and then it teaches you your first lesson.
High Conviction Doesn't Require Massive Portfolio Bets
I've always been a conviction investor, but I have evolved in how I define "high conviction" and how it is expressed within my portfolio. When most investors hear high conviction, they think of high concentration. To them, concentration means making...
Invest for Few Big Winners, Sell the Rest
During a lifetime you will have 10-20 big winners and hundreds or thousands that didn’t live up to your expectations. Long-term investing success is capturing those 10-20 monsters while also understanding 95% of what you own will deserve to be...
True Quality Endures Beyond Changing Conditions
Quality is an idea, a piece of artwork, a business, a relationship, or even a book that keeps working (providing value) even after conditions change over time. Quality is an interesting topic because it’s one of the most overused terms...
Investing Is Cooking: Show the Full Flavor, Not Ingredients
A Stock Picker is a Chef Envision you are a Chef hosting a dinner. Mise en place is the French term for having all ingredients measured, chopped, and arranged before cooking. Your guests haven't been told what you are making. They only see the...
Distinguish Initial Large Bets From Growing Positions
New Article There is a massive difference between taking a large initial position and allowing a position to become large. Few investors understand this distinction. https://t.co/hxHNHYqor8
Outperformance Depends on People, Not Just Processes
So good by @GavinSBaker In Michael Jordan’s second to last year with the Chicago Bulls, Jerry Krause, GM of the Bulls said, “Listen players don’t win championships, organizations do. It isn’t just Jordan or Pippen. It’s how we scout, draft,...
Even Top Pickers Need Decades to Find Few Winners
🎯 It takes the best stock pickers in the world a few decades of owning hundreds or even thousands of stocks to find a handful that are worthy of holding long-term. https://t.co/KRxH9wKOSP
First‑Principles Approach Unlocks Multi‑Bagger Stock Success
A blast from the past. I gave this presentation at @smallcapdisc in 2023. Multi-Bagger First Principles https://t.co/YJT8idrZf0
Microcap Success Demands Independent, Self‑driven Research
Successful microcap investors are always independent minded people. They are used to no analyst coverage, no institutional following, no liquidity - no safety net. They are used to doing their own work and building their own conviction. It's why most...
Holding Is an Active Choice, Not Inaction
Buying and selling feel easier than holding because we are wired to believe activity = productivity. Holding is hard because it feels like inaction and complacency. But every day holding is an active decision.
Winning Stock Picking Means Knowing When to Sell
Successful stock picking isn’t just picking winners. It also means picking out the losers in your portfolio. The greatest advantage in public markets is “You can sell”. But you must know when to sell. https://t.co/iL6AHqtOyR
Microcap Olympics Unites 16 Nations
On theme with the Olympics. The goal is to bring the world of microcap together. 16 countries represented so far... 🇺🇸🇨🇦🇬🇧🇪🇸 🇦🇺🇧🇪🇧🇷🇨🇱🇩🇪🇮🇱🇲🇽🇵🇦🇸🇬🇨🇭🇦🇪🇧🇸
Discover 10x Small‑Cap Gems Only Retail Can Own
There are a bunch of small stocks that will 10x over the next five years that are waiting to be found. Institutions can’t buy them. Only you can. https://t.co/yI75FFwGuc
