Sid Choraria of SC Marwar Capital presented his research and reflections from 1,000-baggers at Wide-Moat Investing Summit 2026.
Thesis summary:
Sid has studied 1,000-baggers, stocks that returned 1,000x in USD terms, drawing on a 10,000-hour proprietary database of the best businesses in every country by growth stage. Over the past 40 years, only about 65 of some 25,000 global companies, under 0.2%, reached that threshold, each taking 25 to 30 years at minimum. Sid’s premise is that fewer than 0.7% of businesses merit an investor’s time, and that because human behavior does not change, past patterns stay usable.
The winners share a repeatable arc. Each started small, often near $50m in revenue, then solved a structural problem cheaper, faster, or better in a niche that larger rivals ignored. Revenue compounded non-linearly early, often at 20% to 40% a year, through the first $1bn to $2bn. Switching costs embedded the product in customer workflows, and the company then cross-sold into a captive base. Weak or unfocused competition mattered more than brilliant strategy.
Sid’s case studies show the arc at work. Cintas compounded about 19% a year in uniforms, mats, and first aid, growing revenue from $244m to about $11bn across 12,000 routes, and bought back stock in 2008 while raising its dividend for a 26th straight year. Jack Henry grew revenue from $11m in 1985 to $2.4bn serving ignored community banks. HEICO made about 107 acquisitions around FAA-approved parts, and Pool, with about 80% non-discretionary sales, was an 800-bagger at its peak.
What the winners did not share is as telling. They came from no single industry, seldom traded very cheaply, and were not all profitable early: HEICO, Netflix, and Nvidia burned cash. Not all relied on M&A or visionary founders, though Couche-Tard built 77% of its footprint through bolt-ons. Nearly all suffered deep drawdowns and looked broken at points; several, including Nvidia and NVR, neared bankruptcy. The compounding formula Sid distills is revenue growth plus margin expansion plus buybacks plus underestimated duration.
Sid applies this as a screen. He wants high switching costs, room to grow revenue at least 10x, and early growth of 15% to 20%, then sets a disciplined purchase price and tracks each name. Conduct during crises, such as buying back stock or raising the dividend in 2008, is a key idea-generation signal. Resilient founders owning 30% to 40% in the first 5 to 15 years recur among the leaders. He searches globally; the US and India have produced the most domestic winners.
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