100Baggers

100-BAGGERS DISTILLED: ESSENTIAL PRINCIPLES 183
You may dismiss this as gimmicky. But I urge you to find some way
to leave your stocks alone. Let them ripen on the vines. Don’t pick them
too early.
#8 You Need a Really Good Filter
There is a world of noise out there. The financial media is particularly
bad. Every day, something important happens, or so they would have
you believe. They narrate every twist in the market. They cover every Fed
meeting. They document the endless stream of economic data and reports.
They give a platform for an unending parade of pundits. Everybody wants
to try to call the market, or predict where interest rates will go or the price
of oil or whatever.
My own study of 100-baggers shows what a pathetic waste of time
this all is. It’s a great distraction in your hunt for 100-baggers.
To get over this, you have to first understand that stock prices move
for all kinds of reasons. Sometimes stocks make huge moves in a month,
up or down, and yet the business itself changes more slowly over time.
There are great examples of this all over the place. Because it’s at
hand, I’ll share a snapshot my analyst Matt Goodman forwarded to me
about Monster Beverage, a 100-bagger we covered earlier.
It’s a sort of “heat map” and shows you the monthly moves Monster’s
stock made each month from 2000 to 2014. On the far right-hand side,
you’ll see the annual move.
Just look at this chart on the next two pages for a bit and see what
jumps out at you.