UNEARTHING CENTURIONS

Spot the one, stay the course — let time turn pennies into fortunes, says Thomas Phelps

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In the unpredictable world of stock market investing, where fortunes can change in an instant, Thomas W. Phelps’ “100 to 1 in the Stock Market” remains a timeless guide to building lasting wealth. First published in 1972, this classic goes beyond short-term speculation, offering a proven strategy for identifying “100-bagger” stocks - those that can deliver a 100-fold return over time.

Phelps, an experienced financial journalist and market researcher, challenged the notion that investing is a quick-profit game. Instead, he promoted a disciplined approach rooted in patience and quality. His philosophy: invest in exceptional businesses and hold them through years of growth. This is the key to achieving extraordinary returns, making his insights as valuable for modern investors as they were over 50 years ago.

The Power Of Perpetual Ownership: The Buy-And-Hold Doctrine

Thomas Phelps’ investment philosophy, as outlined in “100 to 1 in the Stock Market,” centres on the “power of buy and hold.” He argues that lasting wealth isn’t built on frequent trading, but on selecting exceptional companies and holding them for decades. This approach directly challenges the common focus on short-term profits. Phelps highlights that “most investors miss out on enormous gains simply because they sell too soon,” often after minimal gains.

He uses case studies to demonstrate the significant losses incurred by prematurely exiting strong investments. He emphasizes that “successful investors need the vision to see opportunities, the courage to invest in them, and, most importantly, the patience to hold onto them.” Patience, according to Phelps, is the most crucial, yet rarest, trait for achieving substantial returns. It’s the ability to ignore short-term market noise and maintain unwavering belief in the long-term potential of chosen investments. This steadfastness allows the power of compounding to work its magic over extended periods.