The 1,000-Bagger Formula: Growth, Margins, Buybacks, and Duration

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 proprietary database built over roughly 10,000 hours that catalogs 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, and each took 25 to 30 years at minimum. The exercise therefore isolates competitive advantages durable enough to hold across decades. Sid’s premise is that fewer than 0.7% of businesses merit an investor’s time, and that because human behavior does not change, the patterns behind past winners 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 inside a niche that larger rivals ignored. Revenue compounded non-linearly early, frequently at a 20% to 40% CAGR, through the first $1bn to $2bn. Switching costs embedded the product into customer workflows, after which the company cross-sold into a captive base: Cintas moved from uniforms into first aid and compliance, Jack Henry from core banking software into ancillary products, Pool across chemicals, equipment, and repair parts. Weak or unfocused competition mattered more than strategy.

What the winners did not share is as telling. They came from no single industry, seldom traded very cheaply, were not all profitable early (HEICO, Netflix, and Nvidia burned cash), and did not all rely 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 operationalizes 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 purchase price and tracks each name with discipline. Conduct during crises, whether a firm deployed FCF into buybacks or raised its dividend in 2008, is a primary idea-generation signal. Founder ownership of 30% to 40% during the first 5 to 15 years, plus resilience, recurs among the leaders. His search is global, with the US and India the most productive for domestic winners

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

First name:

Last name:

Email address:

City / state / country:

Company:

How did you hear about MOI Global? Select Member referral Staff This website Media / Internet Other

If referral, please provide member's name:

Which of the following applies most closely to you? Select Investment Firm - Head Investment Firm - Analyst or PM Institutional Allocator - Firm C-Level Executive Institutional Allocator - Firm Employee Family Office - Head or Co-Owner Family Office - Employee Non-Investment Firm - C-Level Executive Non-Investment Firm - Employee Other

How do you hope to add value to the community?

Leave this field empty if you're human:

About the instructor:

Sid Choraria is the Founder & Portfolio Manager of SC Marwar Capital, investing globally. He has spent 10,000 hours developing a proprietary research system to track the world’s best businesses. In 2013, Sid received a rare personal reply from Warren Buffett regarding a research report he authored on a Japanese business he wrote to Buffett. Mr. Buffett wrote back “Sid – this is a good business… we are looking for companies like this… keep your eyes open!” Over the past decade, he has managed capital at several multi-billion dollar hedge funds as Portfolio Manager and Head of Research across Asian equities. He previously worked at Goldman Sachs in Technology Investment Banking. Sid enjoys giving back knowledge and has spoken on investing at universities like MIT, Stanford, Yale, Princeton, Harvard, Columbia, NYU, London Business School and organizations including Google, Intel, and GIC (Singapore). His research have been featured in the Financial Times, CNBC, Bloomberg, Schwab, Value Spain, Sydney Morning Herald, Goldman Sachs Alumni Network and other leading global media. Sid have received multiple global research awards for his analytical and probing research rigor. He earned his MBA from New York University Stern School of Business as a Harvey Beker Scholar.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.