Read Thomas Phelps 100 to 1 in the stock market (after I read @chriswmayer 100 baggers (also excellent). Some notes I made on the book. Mostly from the last chapters.

Let me start with the last sentences: "In Alice in Wonderland one had to run fast in order to stand still. In the stock market one who buys right must stand still in order to run fast.

So the most important part is finding the right business. The most predictable category are businesses that reinvest earnings at a constant or rising rate of return on invested capital.

Price is highly important. None of the 100-to-1 stocks were selling at high PE's when opportunity beckoned. Their great price advances resulted from a compounding of earnings gain by multiplier gains. Earnings rose and so did the market price of each dollar of earnings

Two of most important questions to buy growth:
1. How high and strong is the company's "gate" against competition?
2. How good are prospects for sales growth? No matter how high ROE is, if TAM is too small the company can't grow by plowing back earnings.

On making distinction between earning power vs. earnings, watch following metrics:
1. Sales growth
2. Profit margins
3. Rate of return on BV (equity)
4. ROIC
5. Ratio of sales to invested capital
6. Build up of book value
Trends are important, a ten year record is desirable

If a company has a high ROIC, dividends are an expensive luxury.

Convinction is important to hold on in challenging times.