The 10x to 100x Framework
Firstly, I like to apologize for my slient lately.
I just came out of my hibernation after finishing the 100 bagger book by Christopher Mayer.
If you have read my 28 April post – I am getting slightly tired of the market. I probably need some new excitement in my stock investing journey. Thus, one of my friends introduced the above book to me.
- Read with an open mind
- The idea is to find companies with great business model that has the potential to reach 10x based on its existing business model, and then IMAGINE how the business model could improve/innovate further into the future and allow the company to reach 100x. Basically we have to think in the mind of the founder – Be the founder.
- 10x will take a long time to reach. 100x takes a longer time. Some even state that it could take 20 years or more.
- Break away from the stereotype of the existing business model that reaches 100x.
- Break away from the stereotype of the current market cap.
- 20 years is a long time. Many things could change. Look at how handphone has become a smartphone. We also never expect FB to reach the current market cap when it just started.
- We need to have imagination.
- Portfolio wise – we must try to concentrate as much as possible till the edge where any “more” you will not be able to sleep well at night.
- This is a 8+1 criteria for this framework.
- This is only a framework. It should only be used as a guide. If a company is able to pass all criteria does not guarantee that a company could reach 10x or 100x.