100x The Power of Growth in Wealth Creation

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Thanks to Ian Cassel from MicroCapClub for tweeting out a link to a paper produced by Motilal Oswal which is a study on companies that have gone on to become 100 baggers within that past 5 years.  A 100 bagger is a company whose share prices as increased 100 times the initial price, or in other words, the company has experienced tremendous growth that has translated into tremendous share price gains.


100x The Power of Growth in Wealth Creation is an excellent read and is under 50 pages long.  The companies used in the study are all in India, however, the study still produces some great insight.  The authors state that they are value investors, and often quote other prominent value investors throughout the paper.  Apparently  this study is written  every year and includes a new 5 year period ending with the current year.  This years study begins in 2009 and spans through 2014.

My favorite section of the paper includes this chart:


Here the authors have broken down the 5 elements that make up the criteria for a company to go on and increase in price by over 100x in the next 5 years.  Each of these elements are more deeply explored in the paper.  This is worth your time to read.

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