A 'must have' quality to buy 100x stocks in 2024
Pidilite was a standout stock in 2023. In response, some readers inquired if it could be a 100-bagger from its current level. Their curiosity takes me back to a quote by Thomas Phelps: "To make money in stocks you must have vision to see them, courage to buy them, and patience to hold them." But Phelps' quote is only half the story, and I'll explain why shortly.
Consider Gillette, known for its shaving razor blades and now under Proctor and Gamble (P&G). It took Gillette nearly 32 years to become a 100-bagger, yielding a 9,900% return. This translates to an impressive 15% compounded annual return over three decades.
Thomas Phelps, in his book "100 to 1 in the Stock Market," highlights an interesting backstory about Gillette, which eventually became one of Warren Buffett's favored stocks. Gillette's success story is one of continuous expansion, innovation, and technological adoption. An early adopter of television advertising in 1944, when most brands overlooked the medium, Gillette maximized its visibility.
They not only invested in advertising but also leveraged data to identify key buyers. Their innovations were highly anticipated, much like how customers now look forward to Apple's new launches. Gillette's commitment to research and development (R&D) was unwavering, even without immediate competition.
This commitment was bolstered by a loyal customer base willing to pay more for superior blades. This focus on R&D created a significant barrier for competitors. Gillette also ensured to patent every technology it developed.
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