A 100-fold increase in stock prices in 10 years means that it will grow at an annual average of 58%.

A 100-fold increase in stock prices in 10 years means that it will grow at an annual average of 58%.

Considering that the average annual return on the S&P 500 is about 10%, it is almost impossible.

However, there are companies that have actually created these miracles, and they have several things in common.

First, they didn’t just make good products, they redefined the market itself.

Netflix (which took eight years) started out as a DVD rental business, but changed its way of consuming video content by moving to streaming.

Tesla (which took eight years) has made electric cars a coveted product, not a sacrifice for the environment.

Nvidia (which took nine years) has become a centerpiece of the AI revolution in gaming graphics card companies.

Pharmacyclix (5 years) rewrote pharmaceutical history with blood cancer drug Imbruvicar.

Nexta (which took seven years) changed the media landscape by merging local stations.

Questco Pharmaceuticals (which took four years) pioneered the special drug market.

Biogen Itec (5 years) has demonstrated the potential of biotech as a treatment for multiple sclerosis.

They did not take away their share in the existing market, but laid a new game board just like Peter Thiel said zero-two-one.

Second, the timing was perfect.

The technology was ready, but it captured a moment when the market did not yet know its value.

In 2006, when Amazon (10 years) started AWS, most companies didn’t even know what the cloud was.

Now it is a business that accounts for most of Amazon’s operating profit.

If it’s too fast, the market can’t keep up, and if it’s too late, it’s behind the starter.

100-fold companies have timed this correctly.

Third, network effectiveness or scalability is maximized.

Facebook (which took nine years) was a structure that increased in value as the number of users increased.

Software companies have only fixed costs and little variable costs, so when sales increase, profit margins rise exponentially.

On the other hand, traditional manufacturing has limited growth because it has to build more factories and buy more raw materials.

100-fold companies had a structure in which the cost of securing one more customer gradually decreased.

Fourth, the vision of the founder or management overwhelmed the skepticism of the market.

Jeff Bezos has spent years in the red but has been engrossed in expanding his market share.

Wall Street scoffed, but he went his own way.

Elon Musk was on the verge of bankruptcy under the goal of popularizing electric vehicles and eventually did it.

Rather than focus on quarterly results, they looked 10 years later and were convinced the market was wrong.

Fifth, most of them were initially overestimated and then reevaluated as they proved their performance.

When many investors say it’s a bubble, it was actually a moment when the market started to understand new possibilities.

Of course, there are many real bubbles, but 100-fold companies blew away doubts with their performance.

If you want to find a stock that will increase 100 times within 10 years, let’s pay attention to the above characteristics.

A company that reinvents the market, is infinitely scalable, network-effective, and is led by a visionary leader.

However, the key is to discover such companies early on.

(*References are available in the comments)