# 100 Year Thinkers, Ep. 6 | Chris Mayer & Robert Hagstrom: Most Stocks Don’t Matter & The Outliers That Break Base Rates

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Text version: https://stenobird.com/podcast/talking-billions-with-bogumil-baranowski-5857987/100-year-thinkers-ep-6-chris-mayer-robert-hagstrom-most-stocks-don-t-matter-the-outliers-that-break-base-rates.md
Podcast: [Talking Billions with Bogumil Baranowski](https://stenobird.com/podcast/talking-billions-with-bogumil-baranowski-5857987)
Published: 2026-03-28T04:12:00+00:00
Episode link: https://podcasters.spotify.com/pod/show/talking-billions/episodes/100-Year-Thinkers--Ep--6--Chris-Mayer--Robert-Hagstrom-Most-Stocks-Dont-Matter--The-Outliers-That-Break-Base-Rates-e3h2sjf
Audio file: https://anchor.fm/s/bc3d43f4/podcast/play/117583919/https%3A%2F%2Fd3ctxlq1ktw2nl.cloudfront.net%2Fstaging%2F2026-2-27%2F420911342-44100-2-d4f17dfaca1eb.m4a
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Duration seconds: 4305

## Resource

This episode brings together Robert Hagstrom and Chris Mayer to explore how investors should think about base rates, extreme outcomes, and the realities of long-term wealth creation in markets. Drawing on Michael Mauboussin's work, the conversation challenges conventional ideas like mean reversion and highlights why a small number of companies drive most stock market returns—and what that means for portfolio construction. Matt Zeigler and I had the privilege of hosting Robert Hagstrom (The Warren Buffett Way) and Chris Mayer (100 Baggers) for a special 100-Year Thinkers Edition of the Excess Returns Podcast. Available now on Excess Returns Podcast and Talking Billions. 🎧 I’m excited to share this episode with you—it’s reposted here with permission and blessing from both Matt and Jack. Don’t miss it! And follow their work, links below. Chris’ New Book https://shop.generalsemantics.org/pro... Robert’s Book: Investing: The Last Liberal Art https://www.amazon.com/Investing-Libe... https://excessreturnspod.com/ • Why markets are driven by extreme outcomes and power laws, not averages • The Best & Bessembinder research showing a handful of stocks create most wealth • Base rates vs outliers and when to trust historical probabilities • Why the 100 bagger framework focuses on studying winners, not predicting them • Portfolio construction as a way to capture asymmetric upside • Buffett’s approach to consistency, durability, and long-term operating history • Inside view vs outside view and how narratives distort investing decisions • Why AI may be breaking traditional base rate assumptions in software and tech • The limits of mean reversion and why it can lead investors astray • Return on invested capital and how competition erodes excess returns over time • Identifying durab…

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