AI-Generated Content — This profile was created using AI. While we strive for accuracy, details may not be perfectly precise.
Thomas W. Phelps
United States
Net Worth
Priceless Wisdom
Source of Wealth
Wall Street Journal, Barron's, Scudder Stevens & Clark
Global Rank
#104 of 157
About Thomas W. Phelps
Thomas William Phelps (1902-1992) was a distinguished financial journalist, Wall Street economist, investment counselor, and author whose single book — '100 to 1 in the Stock Market' — became one of the most influential investment texts ever written. His five-word philosophy, 'Buy right and hold on,' has guided generations of investors toward the patience required to achieve extraordinary returns.
Phelps's career spanned over fifty years across journalism and finance. He began as a city editor at age 17 in Rochester, Minnesota, became chief of the Wall Street Journal's Washington Bureau, served as editor of Barron's, was a partner at the elite brokerage Francis I. du Pont & Company, worked as an economist at Socony Mobil Oil, and spent his final decade before retirement as a partner at the venerable investment counsel firm Scudder, Stevens & Clark.
In 1972, drawing on his lifetime of observation, Phelps published his study of 365 stocks that returned at least 100 times their purchase price between 1932 and 1971. His central finding was revolutionary in its simplicity: the greatest obstacle to making 100x on your money is not finding the right stock — it is the irresistible temptation to sell too early. Patience, he argued, is the rarest and most valuable quality an investor can possess.
Phelps graduated Phi Beta Kappa from the University of Minnesota and received its Outstanding Achievement Award in 1956. He retired to Nantucket in 1970 and died there in 1992 at age 90, leaving behind a legacy that continues to inspire the buy-and-hold movement to this day.
Key Achievements
Wrote '100 to 1 in the Stock Market'
Published one of the most influential investment books ever written, studying 365 stocks that returned 100x between 1932-1971 and proving that patience is the rarest investor virtue.
Chief of WSJ Washington Bureau
Rose from small-town Minnesota journalist to chief of the Wall Street Journal's Washington Bureau, covering the intersection of policy and markets during the Great Depression era.
Editor of Barron's
Served as editor of Barron's National Financial Weekly (1936-1938), one of the most prestigious positions in American financial journalism.
Partner at Scudder, Stevens & Clark
Spent his final professional decade at the pioneering investment counsel firm, applying his lifetime of market observation to managing client portfolios.
Inspired the 100-Bagger Movement
His work directly inspired Chris Mayer's '100 Baggers' (2015), Chuck Akre's investment philosophy, and the broader buy-and-hold compounding movement that continues today.
Notable Quotes
“Buy right and hold on.”
— Thomas W. Phelps
“To make money in stocks, you need to have vision to see them, courage to buy them and patience to hold them. Patience is the rarest of the three.”
— Thomas W. Phelps
“The big money is not in the buying and the selling, but in the waiting.”
— Thomas W. Phelps
“Far more money can be made by good stock selection than by good market timing.”
— Thomas W. Phelps
“Anyone who can hold on in the face of all the advice and temptations to make sure of a profit demonstrates a quality of mind quite out of the ordinary.”
— Thomas W. Phelps
Key Decisions
Became city editor of the Rochester Post and Record at just 17 years old, launching a career in journalism.
Joined the Wall Street Journal, eventually rising to chief of the Washington Bureau and news editor.
Became editor of Barron's National Financial Weekly, one of the top positions in financial journalism.
Left journalism for Wall Street, becoming a partner and economist at Francis I. du Pont & Company.
Joined Scudder, Stevens & Clark as a partner, applying fifty years of market observation to investment counsel.
Published '100 to 1 in the Stock Market,' distilling a lifetime of investment wisdom into a single masterwork.
Early Life
Born June 15, 1902, in Chester, Minnesota, Phelps showed precocious talent, becoming a city editor at age 17. He graduated Phi Beta Kappa from the University of Minnesota in 1923 with a BA degree cum laude, then worked as a reporter and city editor at the Minneapolis Journal before freelancing from 1925-1927. His transition from journalism to the Wall Street Journal in 1927 placed him at the epicenter of American finance just before the 1929 crash.
Investment Principles
Buy Right and Hold On
The entire philosophy in five words. Stock selection matters infinitely more than market timing, and the real money is made by those who resist the urge to trade.
Patience Is the Rarest Virtue
Vision to see great stocks and courage to buy them are valuable. But patience to hold them through volatility is the rarest and most valuable quality of all.
Compound Earnings, Not Trades
The most reliable path to 100x returns is investing in companies that reinvest earnings at substantially above-average rates of return over decades.
Look for Competitive 'Gates'
No business is so good that it cannot be spoiled if too many get into it. Invest in companies protected by patents, brands, or scale that make entry difficult.
Bet on Companies That Improve the World
Invest in organizations fired by the zeal to meet human wants and needs, not just ones motivated by profit alone. Ask: does this company make the world better?
Never Take Investment Action for Non-Investment Reasons
Selling to pay taxes, buying to impress friends, or trading because of boredom are all recipes for destroying returns. Every action must serve an investment purpose.
Life Lessons & Insights
Humility Comes From Experience
Phelps bought Southern Railroad on margin after the 1929 crash and was wiped out when it fell further. This early lesson in humility shaped his entire philosophy.
Set Your Goals High Enough
The reason more people don't make 10,000% on their money is that they don't set their goals high enough. When looking for the biggest game, never shoot at anything small.
Beware of Egonomics
An egotist would rather lose money on his own idea than make money on someone else's. This 'egonomics' destroys more investment returns than any market crash.
Monuments Rarely Pay Dividends
When a business begins to get stately, wise investors quietly get out from under. Business is about movement and progress — its past means nothing; tomorrow counts.
Deep Dives
Go deeper into what makes Thomas W. Phelps exceptional.
Explore More
See how Glen Bradford applies these principles to his own investing. Long Fannie Mae & Freddie Mac junior preferred — and not going anywhere.