100 to 1 in the Stock Market

Thomas Phelps’ study of hundredfold returns — what the great compounders had in common, and why buy-and-hold is the only strategy that can actually capture them.

Context: Out of print for decades and revived by the long-term-compounding crowd; the analysis runs on pre-1970 data.

Why it’s on the list: The most direct treatment of the arithmetic Kyle keeps circling: outcomes are made by holding, not by picking.

Where I saw it: Mohnish Pabrai published a list of the six books that helped him most in learning to invest; it reached Kyle through a thread by Daniel Mahncke.

Connections

• Mohnish Pabrai — recommended it
• Compounding
• Long-Term Holds