What Is a 100-Bagger Stock? Mayer's Framework (UK)

A 100-bagger is a stock that returns 100 times your original purchase price. Christopher Mayer studied every US 100-bagger from 1962 to 2014 to find what they had in common.

The four traits: high return on invested capital, long growth runway, founder-led management with skin in the game, and a reasonable entry valuation.

The median 100-bagger took 26 years. Most investors who owned one sold long before it got there.

For UK investors holding global index funds, the next batch of 100-baggers is already inside your fund - weighted small, rebalancing up as they grow.