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Chris Mayer discusses his research on stocks that compound at high rates for decades. The key insight: the hardest part isn't finding great companies — it's holding them through the inevitable drawdowns, controversies, and periods of underperformance.
This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.
Canon
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Mayer argues that the courage to hold through drawdowns is the single most valuable investment skill, and it must be built through practice: starting with small positions, studying the histories of great compounders, and experiencing drawdowns firsthand.
Highlights
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The average holding period for stocks has dropped from 8 years (1960) to 5.5 months (2024) — and this short-termism is the primary reason most investors underperform
Mayer presents data showing that average holding periods have collapsed, meaning most investors sell their best stocks far too early. The investors who earned 100x on Amazon, Apple, or Netflix held for 15-20 years through multiple 50%+ drawdowns.Was this useful?