During his recent interview with The Investor’s Podcast, Ian Cassel explains how to find 10 baggers, 20 baggers. Here’s an excerpt from the interview:
Cassel: There aren’t many of them that exist, you know, and that’s why they trade where they do. And so that’s also an element of scarcity that I find attractive.
So when you combine all three of those things — a small company, unique, one-of-a-kind business with a higher organic growth rate or a highly leveraged business combined with not very many shares outstanding — it creates very explosive earnings per share growth.
And that’s what I’ve seen over 20 years: those companies that can go from zero earnings per share to a dollar or $2 per share in like one or two years, that just captivates, mesmerizes the investor base.
And you institutions are just drawn to them like a moth to a flame, you know, and that’s where you get 10 baggers, 20 baggers in a couple of years from those situations.
So that’s primarily what I wrote the article on, kind of drawing on some of my past experiences. I always wanted to talk about Benjamin Franklin and the kite experiments, so I kind of drew that into it as well.
You can watch the entire discussion here:
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