100-Baggers

A 100-bagger is a stock that returns 100× the original investment — a holding that, held long enough through compounding, turns $1 into $100.

The concept is associated with patient, concentrated, long-horizon investing. Nick Sleep’s Nomad Investment Partnership is the canonical example in Kyle’s corpus: 921% returns against a 117% market benchmark, achieved by refusing to trade short-term and turning away new money rather than diluting the strategy. Sleep’s framing: “Business outcomes can be more predictable several years out than they are in the near term” — making the long end of the equity yield curve less competitive, not more.

Finding 100-baggers requires investing “at the long end where competition is the least,” against a crowd that concentrates at the short end. The Compounding engine does the work once you own the right business and hold long enough not to interrupt it.

Where this appears

• This Man Achieved 921% Returns… (tweet)
• Nick Sleep