Neeraj Khemlani: The Coffee Can Investor: A Stock-Picker's Journey to Build Generational Wealth

Neeraj Khemlani (0:00)

A couple of years ago, during one of those annual calls, Matt Ancrum tells me, and he's very industrious, that he's been studying 100 baggers, right? And so your audience knows this, these are stocks that have multiplied in value 100 times. And he started by looking at every company that went public since 1980 on. Now, the average 100 bagger, compounding at 16.5% a year, usually takes 30 years. So he studied the time period, 1982 to 2000, so that everyone had time to sort of exist for 30 years. And he showed me his research on what all of these incredible unicorn stocks had in common. And there were lots and lots of headlines, which I'm sure we'll get into. But I wasn't sure what to do with it.

And then he tells me, what he's doing is he's taking this research of what 100-baggers have in common and using that research to identify potential future 100-baggers, companies that could multiply 100 times into the future. And my interest levels went even higher. I still wasn't sure what to do with it. And then I said, well, so what are you going to do with that information? And he said, well, I'm going to take $5 million of my own money, Matt tells me this, and I'm going to invest it in these potential 100-baggers, and I'm going to put them in a metaphorical coffee can. I won't touch them. I mean, I'll look at them. If something drastically goes wrong, I'll make changes.

But I want to hold them for the long term, and they will be my gift to my three daughters. And I was like, holy shit, that's a book.

Bogumil Baranowski (2:01)

Welcome to Talking Billions. We talk about big ideas, big inspirations, big topics. We take on the hardest topic of all, money. How to make it, save it, keep it. But our conversations lead us to an even bigger question, what it means to live a rich life beyond money.

My guests share their practices, principles and evergreen wisdom.

I'm your host Bogumil Baranowski, author, TEDx speaker and investment advisor to wealth creators with patient capital and an infinite investment horizon. I work with families and individuals who aspire to grow wealth over lifetime and generations through discipline, thoughtful investments in durable quality businesses while giving money, meaning, join me on this quest to unearth and share the wisdom of the ages. Let me share with you the podcast program disclosure statement. Blue Infinitas Capital, LLC, is a registered investment advisor and the opinions expressed by the firm's employees and podcast guests on the show are their own and do not reflect the opinions of Blue Infinitas Capital. All the statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such. Any statements or opinions are subject to change without notice. The information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. The information expressed does not take into account your specific situation or objectives and is not intended as the recommendations appropriate for any individual.

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The link will be in the show notes. My guest today is Neeraj Khemlani, the former president, a co-head of CBS News and Stations, a veteran 60 Minutes producer and media executive and the author of The Coffee Can Investor, A Stock Picker's Journey to Build Generational Wealth, who uses the story of a Midwestern portfolio manager's decade-long search for 100-bagger stocks to make the case that patient, concentrated ownership of exceptional businesses can build truly generational wealth. How are you? So nice to see you.