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Lluis's avatar

If you read the 10Ks (annual reports) available in 2001 for Monster, Apple, and Amazon. Which one would you have picked? This is really difficult to imagine as we know the outcome. As someone that doesn't live in US, I only knew Apple out of the three, might've heard about Amazon.

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Compounding Quality's avatar

The thing is that you only need 1 stock like this during your entire investment career to generate superior returns. It's about letting your winners run.

“If you invest $1,000 in a stock, all you can lose is $1,000, but you stand to gain $10,000 or even $50,000 over time if you're patient.” - Peter Lynch

Personally, I would never have invested in Amazon in 2001 and I probably won't have invested in Apple because the risk was still very high. Monster has a very predictably business model with high profit margins and high ROIC so I would pick that one.

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Lluis's avatar

You are right, I looked at their 2001 numbers and Monster is a straight line always generating cash. Thanks for your content!!! Sometimes you remind me of Terry Smith when looking for quality.

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Compounding Quality's avatar

Wow. This is one of the best compliments I ever received. :)

Terry Smith is one of my personal heroes!

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