Find 100-Baggers With The 20-30-40 Rule (only 5 companies pass this test!)
HTML-код
- Опубликовано: 4 июн 2024
- Find 100-Baggers With The 20-30-40 Rule (only 5 companies pass this test!)
DO YOU WANT TO GET MENTORED BY ME?
www.mentalmodelsmentoring.com/
I've developed a value investing mentoring program, in which you will learn everything from basic personal finance concepts such as ...
✔️ goal setting
✔️ developing a "rich mindset"
✔️ dealing with debt
✔️ big life expenses
✔️ investing 101 ...
... to more advanced topics like ...
✔️ how to read and work with financial statements
✔️ competitive advantage analysis
✔️ assessing the quality of management teams
✔️ valuation methods
✔️ behavioral finance ...
and MUCH MORE!
GET IN TOUCH:
○ Twitter: / renesellmann
○ Instagram: / rene_sellmann
○ Via the Website: www.mentalmodelsmentoring.com/
Have you ever wondered how you can find some of the best stocks in the world, high quality businesses that have a lot of momentum, are growing rapidly, can compound internally, and have strong fundamentals (100 bagger stocks)? The 20-30-40 stock screening technique might be just the right stock screening process for you.
TWO MORE STOCK SCREENER VIDEOS:
○ • How To Find The Best S...
○ • The ULTIMATE Stock Scr...
WATCH NEXT:
○ Most investors ignore this, but they really shouldn't! • Most investors ignore ...
○ Buy or Rent? Debunking The #1 Rent vs Buy Myth • Debunking The #1 Renti...
○ Can Retail Investors Beat The Market? • Can Retail Investors B...
○ Have Bear Markets Changed Forever? What Investors Should Know About The Next Stock Market Crash! • Have Bear Markets Chan...
○ How Charlie Munger Outperforms the Stock Market Using This Simple Strategy • How Charlie Munger Out...
○ Conviction: The #1 Secret to Long-Term Investing Success • Conviction: The #1 Sec...
OTHER LINKS:
○ TIKR: tikr.com/
○ Finviz: finviz.com/
○ Akre Capital: www.akrecapital.com/investmen...
○ Liviam Capital: / 1416809100038582273
Today I want to talk about a very specific stock screening technique. If you’re not familiar with the term stock screening, a so-called stock screener is basically a search tool that helps you as an investor to simultaneously sift through tens of thousands of stocks and find those stocks that meet certain criteria. For example, most stock screeners such as TIKR, stock rover, tradingview, or finviz will allow you to search and find stocks based on market cap, valuation ratios, growth rates, geography and much more.
But not every stock screener out there offers the same functionality and some actually require payment for more advanced features (e.g. finviz). The one I recommend is the TIKR global stock screener and I’ve already published two videos in which I extensively cover the tools offered by TIKR.
Personally, I consider myself a compounder investor. I just believe that I can achieve the best long-term returns by investing in super high-quality companies that have plenty of reinvestment opportunities, can grow at above-average rates, stocks that can reinvest their money at high returns on capital, and that have pricing power. And ideally, these stocks can compound internally over the course of many years. To quote American investor Chuck Akre here: “The rate of return on an investment doesn’t need to be extraordinary for extraordinary results to occur. What is crucial is having the ability to sustain an investment program uninterrupted over a very long period of time. […] Striving for sustained, uninterrupted compounding over long periods of time is smart investing, and that’s precisely our goal.”
So how do we find companies that can compound internally at above-average rates? Well, the TIKR stock screener and other stock screeners can help you here. In this video, I will show you how the 20-30-40 stock screener technique can narrow the large universe of stocks down to a manageable list of extraordinary businesses.
MUSIC:
○ www.epidemicsound.com/track/A...
DISCLAIMER:
The content provided on this channel should be considered an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The stocks and funds discussed on this channel are examples only and may not be appropriate for your individual circumstances.
Before making any financial or investment decisions, I recommend you consult a financial planner or advisor to take into account your personal investment objectives, financial situation, and individual needs.
In no event shall René Sellmann be liable to any viewer for any damages of any kind arising out of the use of any content published on this channel, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.
I hope you enjoyed the content!
What are your three favorite screening criteria?
1. ROIC
2. Small business
3. Work work wok on their reports and competition's reports.
@@hristolakov3563 How do you define small?
@ Less than a billion (preferably even smaller with low liquidity). Basically unfollowed businesses.
@@hristolakov3563 Do you own any companies with larger market caps? If so, how many (maybe %-wise). Just curious.
@ Yeah, about 50% of my portfolio is large caps.
30CAGR ... Revenue growth
40CAGR... Operating revenue EBIT margin
20CAGr.... Return on Capital
... 😁👍
Thanks mate for summarising! 🙂
The question is whether this approach would have worked in the past in a backtest over a long time period (> 20 years). Does it beat an index investment? Good companies can be bad investments, e.g. if the price is too high.
Hi Rene,
What was the name of the american growth investor you reference at 2:20 in the video? Thanks
Excellent job.
thank you Rene very helpful!
Glad it was helpful!
Thank you fir thus amazing video.
Do you familiar with DCF model?
Yeah, I think DCFs have their flaws but it's the best valuation tool available to investors regardless.
Awesome. Fundamental yet extremely power knowledge to share. Exactly what I needed.
Great to hear Sazid!
TPL is a part of Chris Mayer’s portfolio. QDEL and FLGT have been on the Magic formula list for months now. Cool to see these stocks show up. Great video!
Thanks for the info! I wasn't aware of that. Mayer is certainly another compounder investor.
Where can you find his pics or his stocks?
@@fischingfudge an investor on RUclips pieced it together
ruclips.net/video/CPmkirIf0fE/видео.html
@@SmoothHov24 His blog posts are excellent educational resources too
these have enough market cap to be on the magic formula?
this is great, you earned a new sub 🙂
Welcome aboard!
Excellent video! Thanks for sharing
My pleasure!
Awesome video bro. I'll definitely jump on TIKR
Thanks.
Great vid thanks
You're welcome!
Fb only one up 50%... but chances of 200% from dips and ATH points since. Another just made 50% and the rest sadly didn't do well at all.. quality over quantity... how buffett seems to pick companies in his long term large picks
i have upgrade to see my stock screener results :( - great video you have a new subscriber here
That's awesome Chris. Thanks for your comment.
Hi rene,
Does this gets rid of amazon in early 2000s? As far as I know Amazon always operated with thin margin. So return on capital of Amazon has always been less than 10%? Is there some other metric we can use for these kind of companies at an early stage?
There are two ways to drive return on capital: you either have really high margins or you have super high turnover on your inventory (or you have both).
Amazon is a very unique case study. They kept reinvesting all of their profits, essentially hiding their profitability and thereby decreasing returns on capital (at least on the "accounting surface").
As with any business, at the end of the day, you need to get to a point where you understand qualitatively what a business and its management are doing. A screener cannot do that.
Great video Rene, have you come across 'stock rover' by any chance?
I have not. What features does it have, making it worth looking at it?
@ Inbuilt screeners, plethora of metrics - worth a look.
@AR Thanks for getting back so quickly. I'll have a look. Thanks for the tip.
Hi, great video! Thank you! Are you following the 100x Bagger Theory written by Christopher Mayer?
Well it's a great book. But it's not like he's outlining a complete investing framework in the book. It's more of an investing philosophy focused on high-quality growth companies trading at attractive prices - I resonate with that philosophy a lot.
😳 Database power. Quite incredible when you think of how this was compiled and the technology implemented 🤯 ….and free to use ?
I am afraid TIKR will not be free for long.
1 screener free but with some limitations otherwise to be upgraded
Excellent video! 👏
Would love to have you as a Stock Card partner, and share a 100x portfolio with the community.
Happy to share more info?
Hey there. Thanks for the kind words. As of now, I have to pass on your offer. But thanks for reaching out!
What's your view on the valuation multiple? Good business does not necessarily mean good investment if thr price paid is too high.
Very true. That's why this is only a starting point.
What screener is this?
TIKR - tikr.com
@ Thx
Problem is to generate 100x returns you have to invest before they reach any of these metrics. Investing is hard
I see your point. There are however incredibly profitable small-cap companies that can still reinvest a large % of their profits.
But I tend to agree that especially 40% margins can hardly be achieved while reinvesting heavily. So maybe it's better to think of this metric as "steady state operating margins" (but then the stock won't pop up in a screener).
👍
Thanks Paul
Haha well this didnt age well. SMLR down about 80% since 2022. Maybe investing isnt as easy as plugging 3 numbers into a screener.
It isn't. That's just one of many starting points.
Lol all of these companies went down by 2-4 times since then except for meta. This guy should not invest!!!
Dude you did not even watch the video in full. It's a screener for quality companies to put on your watchlist but the screener is NOT factoring in valuation which is THE most important thing in investing.