Multibagger stock
A multibagger stock is an equity stock which gives a return of more than 100%. The term was coined by Peter Lynch in his 1988 book One Up on Wall Street and comes from baseball where "bags" or "bases" that a runner reaches are the measure of the success of a play.[1] For example, a ten bagger is a stock which gives returns equal to 10 times the investment, while a twenty bagger stock gives a return of 20 times.[2]
This term is especially common when discussing high-growth industries and emerging markets such as the BRICS.[3] As with most investment metrics, past performance is no guarantee of future returns, and multibag returns may be indicative of either sustained growth or an investment bubble.
Examples[edit]
Examples of multibagger stocks on the NASDAQ in 2015 were:
- Energy Focus Inc: A return of more than 1700% in the last 2 years. (as on 16 October 2015)[4]
- EBIX Inc: A return of more than 200% in the last 2 years. (as on 16 October 2015)[5]
- Expedia Inc: A return of more than 200% in the last 2 years. (as on 16 October 2015)[6]
- Netflix Inc: A return of more than 200% in the last 2 years. (as on 16 October 2015)[7]
Examples of multibagger stocks in India in 2015 were:
- Uniply Industries: A return of more than 1400% in the last 1 year. (as on 24 September 2015)[8]
- Mangalam Drugs: A return of more than 400% in the last 1 year. (as on 24 September 2015)[8]
- Intrasoft Technologies: A return of more than 600% in the last 1 year. (as on 24 September 2015)[8]
- Lanco Industries: A return of more than 400% in the last 1 year. (as on 24 September 2015)[8]
- Shreyas Shipping & Logistic: A return of more than 500% in the last 1 year. (as on 24 September 2015)[8]
- Symphony Limited: A return of more than 9,000% in the last 10 years. (as on December 5, 2016)[9]
- Tanla Platforms: A return of 1500% in last three years (as on 7 June, 2022) [10]
References[edit]
- ^ Lynch, Peter (1988). One Up On Wall Street. New York, NY: Simon & Schuster Paperbacks. p. 32. ISBN 978-0-671-66103-8.
- ^ "Tenbagger Definition | Investopedia". Investopedia. Retrieved 2015-10-16.
- ^ "Top 10 midcap stocks that are multibaggers in the making". timesofindia-economictimes. Retrieved 2015-10-10.
- ^ "EFOI Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 2015-10-16.
- ^ "EBIX Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 2015-10-16.
- ^ "EXPE Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 2015-10-16.
- ^ "NFLX Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 2015-10-16.
- ^ a b c d e "Markets Stats - The Economic Times". Retrieved 2015-09-25.
- ^ Business, Money 'n'. "OMG! 90,000% Return on your Equity Investment in 10 years!". Retrieved 2017-06-07.
{{cite web}}:|last=has generic name (help) - ^ "Tanla Platforms Ltd (TANLA) Stock Price & News - Google Finance". www.google.com. Retrieved 2022-07-06.