1. Strict Selection of 100x Potential Stocks
To maximize your chances of identifying future giants, focus on companies that meet the following strict criteria:
A. Growth Metrics (Identify Future Leaders)
✔ Revenue Growth > 15% YoY (sustained for 5+ years) → Demonstrates strong market demand. ✔ Net Profit Growth > 20% YoY (sustainable for 5+ years) → Indicates high scalability and solid profitability. ✔ Free Cash Flow Growth > 15% YoY → Shows that the company generates real cash flow, not just accounting profits.
B. Competitive Advantage Metrics (Companies to Hold Forever)
✔ High Gross Margins (>50%) → Price-setting power and strong brand strength (e.g., Apple, Microsoft). ✔ Net Profit Margin > 20% → Indicates monopoly or near-monopoly status (e.g., Nvidia, Google). ✔ High R&D Investments (>10% of revenues) → Suggests innovation and long-term competitive advantage (e.g., Tesla, Amazon). ✔ High Market Share (>10% in a growing industry) → Potential for future dominance.
Source: Growth Metrics & Investment Fundamentals
2. Minimalist Portfolio Management
Since you only invest when capital is available and rarely sell, the system should function with minimal interaction:
A. Automatic Screening for Exceptional Stocks
Use an automatic stock screener that applies the criteria above and highlights only a few high-potential stocks per year.
B. Buy Only When Stocks Are Undervalued
To minimize intervention, only invest under these conditions: ✔ Stock is -30% below its All-Time High (ATH) → Even large companies go through temporary corrections. ✔ Future P/E < 30 for growth stocks → Avoid overpaying. ✔ PEG Ratio < 1.5 → Ensures you are not overvaluing growth potential.
Source: How to Use P/E and PEG Ratios
3. Never Sell, Except in Extreme Cases
The strategy is to hold stocks for decades, with selling being an exceptional measure: ✔ The company loses its competitive advantage → e.g., Intel lost ground to AMD. ✔ Revenues or profits decline for 3+ consecutive years → Signals a long-term issue, not just a bad quarter. ✔ CEO change that affects the vision → If a visionary founder leaves (e.g., Steve Jobs, Jeff Bezos), reevaluate. ✔ Major disruption in the industry → If AI disrupts a company’s business model, consider exiting.
Source: Investment Strategy - When to Sell Stocks
4. Automation for Minimal Monitoring
✔ Use Google Sheets or a Python Script to automatically track stock performance. ✔ Automatic Screener Updates → Set it up once, check it only when you have capital to invest. ✔ ETFs for Hard-to-Analyze Sectors → If you don’t have time to research biotech, consider investing in a biotech ETF.
Source: ETF Investing - A Guide
5. Summary of the “Minimalist 100x Portfolio” Strategy
✔ Buy only exceptional companies with long-term competitive advantages. ✔ Invest only when stocks are undervalued (-30% from ATH, PEG < 1.5). ✔ Sell only in extreme cases (loss of market leadership, continuous decline in profits, major disruption). ✔ Use automation to minimize interactions.
This strategy allows you to maximize compound capital over the long term, with minimal effort in managing your investments. 🚀
Disclaimer:
This material is for educational purposes only and does not represent financial advice, investment recommendations, or a guarantee of future performance. Any investment decision should be made based on your own analysis and, if necessary, with the consultation of a financial professional. Investments in the stock market carry risks, including the loss of capital.
