“To make money in stocks, you must have the vision to see them, the courage to buy them, and the patience to hold them.” ~ George Baker

The rarest of the three investing virtues is patience, according to Thomas Phelps.

Thomas Phelps was 70 years young when his book “100 to 1 in the Stock Market” was published. Phelps spent over 40 years in the investing world working as a private investor, a columnist, an analyst, and a financial advisor.

Mr. Phelps went back in history and found that from 1932 to 1971, there were over 350 stocks in which you could have turned $1 into more than $100. He said, “The reason that more people don’t make 10,000% on their money is that they don’t set their goals high enough!”

He  shared four things an investor should look for when investing their money in order to increase their wealth 100-fold.

1. Invest in smaller companies that can sustainably grow their earnings at a fast pace for a long time.

2. Invest in relatively unknown businesses. Phelps writes, “Popular growth stocks may keep on growing, but too often one has to pay for expected growth, too many years in advance.”

3. Invest in companies with a strong, progressive, research-minded management team

4. Buy companies that have a unique product that can do a job better, faster, or cheaper than their competitors or provide a new service with prospects of long-continued sales increases in the future.

This often leads investors to microcaps because they meet many of Phelps’ four requirements:

They are generally early-stage small businesses, relatively unknown, and their values are between $50 and $300 million.

One of Phelps’ biggest takeaways from his study was the importance of simply never selling.

To achieve 100X returns, you need to find companies that are compounding capital rapidly and hold them for a very long time.

This eliminates a big wealth killer: capital gains taxes.

Recognize this guy?

His name is Thomas Phelps, and he wrote a classic book in 1972 called 100 to 1 in the Stock Market.

His ideas inspired Chris Mayer to write 100 Baggers.

Here’s what YOU need to know about Phelps and his strategy to find 100 baggers: 🧵⬇️ pic.twitter.com/A8XK2LXfU5

— We Study Markets (@WSM_TIP) June 14, 2023

Sometime the thing that is holding you back is all in your mind.

Gary Keller, founder of Keller Williams Reality said the following:

It’s Graduation Season! Here is what I would I tell my 18 year old self. Parents, this goes for you too.

1. Breathe. No matter what happens. Just make sure you always breathe and know you’re ok.
2. Love. No matter what happens. Just lead with love and always know that you are loved.
3. People. No matter what happens. Just make time for the people who matter the most.
4. Charity. No matter what happens. Just be charitable and go find a charity and get involved.
5. Hit it. No matter what happens. Pick a target and go for it with everything you’ve got.
6. Never ever give up. No matter what happens. When you fall down simply get up and move.
7. Believe in yourself. No matter what happens. Always believe in yourself, believe you can do all things through Him who strengthens you, and always be grateful. 

Life is not about winning or accumulating wealth. It’s about your relationships, your health, your believing in yourself, your always being grateful, your fighting and never giving up.

https://twitter.com/valuestockgeek/status/1684154374317133826?s=46&t=mF_tsrQnjgviyl62GYfJjw

Success is not just about what you are achieving, but who you are becoming.

Are you spending your whole day pursuing things, or are you becoming something?

At the end of each day, take a moment to reflect on the moments that made you smile, the connections you made, the lessons you learnt, the positive impact you had on others.

It is in the small moments that you often find the greatest joys, it’s the little things that often make the biggest difference.

Each day, ask yourself if you lived authentically, if you were true to your values, and if you took steps towards your dreams, no matter how little.

As the night draws near, you may not have achieved all that you set out to do, but remember, the true measure of success lies in living a life that is aligned with your purpose and that brings you a deep sense of fulfillment.

It’s not enough to only get things done, always have the courage to ask yourself, “How am I living?”

Derek Jeter said, "You gotta have fun…we're playing a game."

Aesop said, "Gratitude turns what we have into enough."

Living with gratitude means choosing to focus on what you appreciate.

Gratitude builds your attitude.

It replaces the "I have to" with "I get to".

Choose to… pic.twitter.com/q2N3gRSaZW

— Coach AJ 🎯 Mental Fitness (@coachajkings) July 22, 2023

The 5 things that can kill your dream: 

1. Fear: Fear is one of the most significant obstacles that can stop people from pursuing their dreams. Fear of failure, fear of the unknown, fear of rejection, fear of what others might think – all these fears can hold you back and prevent you from taking risks or stepping out of your comfort zone.

2. Lack of focus: If you don’t have a clear idea of what you want to achieve, it’s difficult to work towards that goal. Without a specific target in mind, you might find yourself wandering aimlessly and lacking the drive to take action.

3. Negative self-talk: The way you talk to yourself can have a profound impact on your ability to pursue your dreams. If you’re constantly telling yourself that you’re not good enough, or that you’ll never make it, you’re likely to lose motivation and give up on your aspirations.

4. Lack of perseverance: Achieving your dreams often requires hard work, dedication, and perseverance. If you give up too easily when faced with setbacks or obstacles, you may struggle to make progress towards your goals.

5. Lack of support: Having a strong support system can make a big difference in your ability to achieve your dreams. Surrounding yourself with people who encourage and believe in you can give you the confidence and motivation to keep working towards your goals, even when things get tough.

An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellowfin tuna. The American complimented the man on the quality of his fish and asked how long it took to catch them.

The man replied, “only a little while.” The American then asked why didn’t he stay out longer and catch more fish? The man said he had enough to support his family’s immediate needs. The American then asked, “but what do you do with the rest of your time?”

The Mexican fisherman said, “I sleep late, fish a little, play with my children, take siestas with my wife, Maria, stroll into the village each evening where I sip wine, and play guitar with my amigos. I have a full and busy life.” The American scoffed, “I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat, you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually New York City, where you will run your expanding enterprise.”

The Mexican fisherman asked, “But, how long will this all take?”

To which the American replied, “15 – 20 years.”

“But what then?” Asked the man.

The American laughed and said, “That’s the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions!”

“Millions – then what?”

The American said, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siestas with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos.”

Being Rich vs Being Wealthy

Wealth is often hidden and not as visible as riches which can be flashy and showy.

In the book “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy”, authors Thomas J. Stanley and William D. Danko reveal that many millionaires live modest lifestyles and don’t flaunt their wealth. They call this “stealth wealth” and it’s a way for millionaires to avoid drawing attention to themselves and their wealth.

The difference between being rich and being wealthy, according to Kiplinger Magazine, is being rich means adding more zeros to your bank account while being wealthy is about living your life with zero regrets and zero jealousy.

In terms of net worth in the US in 2022:

The top 1% had a net worth had of $10,815,000.

The top 2% had a net worth of $2,472,000.

The top 5% had $1,030,000.

The top 10% had $854,900.

Source:
(1) Are You Rich? U.S. Wealth Percentiles Might Provide Answers. https://www.kiplinger.com/personal-finance/605075/are-you-rich.
(2) Being Rich vs. Being Wealthy: What’s the Difference? | Kiplinger. https://www.kiplinger.com/personal-finance/being-rich-vs-being-wealthy-whats-the-difference.
(3)The Millionaire Next Door: The Surprising Secrets of America’s Wealthy ….