valuation concepts for 100x bagger stocks #investing
"You can't handle the truth". Except in this case, you cant handle the compounding.
Compounding is so difficult for me to understand that I have to model it out for my brain to see it.
Ive also lived it for decades now to believe it.
If you dont know ahead of time what to look for, you wont know what to do when these generational wealth opportunities stare you in the face. Recessions are the best time to grab these.
100 bagger , 100x your money opportunities. thats whats on the table here.
the apples, amazons, googles, microsofts, monster/hansen sodas of the world. did you you know netflix did 100x twice?
These companies grew, quietly, and steadily. And before you knew it, they were massive.
Peter Lynch made famous the concept of PEG ratio. He used the concept of comparing a companies potential growth rate to its PE Price to Earnings ratio. He tried to buy companies with good earnings growth rates and tried to pay less that that rate in PE ratio. So if a company grew at 20%, he was willing to pay 20 PE or better. Overtime, he know he would do well and his company would compound that growth into more and more revenue and value.
PEG ratio concept: The fair price for a company is approximately its growth rate.
PEG ratio doesnt apply for all companies. Its best for scalable businesses that are growing from small to big. Cyclical businesses that require large amounts of capital may not fall under PEG ratio because of the capital constraints and economic sensitivity.
Still working on my modeling. Will share more. Hope you find it useful. Cheers!
Compounding is so difficult for me to understand that I have to model it out for my brain to see it.
Ive also lived it for decades now to believe it.
If you dont know ahead of time what to look for, you wont know what to do when these generational wealth opportunities stare you in the face. Recessions are the best time to grab these.
100 bagger , 100x your money opportunities. thats whats on the table here.
the apples, amazons, googles, microsofts, monster/hansen sodas of the world. did you you know netflix did 100x twice?
These companies grew, quietly, and steadily. And before you knew it, they were massive.
Peter Lynch made famous the concept of PEG ratio. He used the concept of comparing a companies potential growth rate to its PE Price to Earnings ratio. He tried to buy companies with good earnings growth rates and tried to pay less that that rate in PE ratio. So if a company grew at 20%, he was willing to pay 20 PE or better. Overtime, he know he would do well and his company would compound that growth into more and more revenue and value.
PEG ratio concept: The fair price for a company is approximately its growth rate.
PEG ratio doesnt apply for all companies. Its best for scalable businesses that are growing from small to big. Cyclical businesses that require large amounts of capital may not fall under PEG ratio because of the capital constraints and economic sensitivity.
Still working on my modeling. Will share more. Hope you find it useful. Cheers!
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