I was re-reading this book titled “100 to 1 in the Stock Market”, in which the author Thomas Phelps talks about, well, how investors can grow their wealth one hundredfold through buy-and-hold investing.
I came across this book the first time in 2015 through a recommendation, and then realized there was a frenzy around with people trying to get their hands on to a copy of the same.
Just going by this book’s title – 100 to 1 – I thought it was a dangerous first book to be read by people just getting started in the stock market (I continue to believe the same).
The title smelled of overconfidence, and survivorship bias (it still does).
Anyways, I found the book to be good in parts, especially when the author makes the case for long-term ownership of stocks and the virtues of having patience along the journey.
The book starts with a story of five poor Arabs who are woken up one night by an angel.
“Each of you can have one wish,” the angel says.
“Give me a donkey,” asks the first Arab, and he is granted his wish.
Thinking how little the first Arab asked, the second one asks for ten donkeys and gets them.
The third asks for even more – a caravan with a hundred camels, a hundred donkeys, tents, rugs, food, wine, and servants – and gets them from the angel.
The fourth Arab, who had heard the previous three’s wishes, asks for even more. “Make me a king,” he commands the angel who bestows him with a kingdom.
Now, the fifth Arab, having seen his companions ask for too little, resolves to make no such mistake.
“Make me Allah,” he orders the angel.