Multibagger stock

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A multibagger stock is an equity stock which gives a return of more than 100%.[1] 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.[2] 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.[3]

This term is especially common when discussing high-growth industries and or emerging markets such as the BRICS.[4] 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)[5]
  • EBIX Inc: A return of more than 200% in the last 2 years. (as on 16 October 2015)[6]
  • Expedia Inc: A return of more than 200% in the last 2 years. (as on 16 October 2015)[7]
  • Netflix Inc: A return of more than 200% in the last 2 years. (as on 16 October 2015)[8]

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)[9]
  • Mangalam Drugs: A return of more than 400% in the last 1 year. (as on 24 September 2015)[9]
  • Intrasoft Technologies: A return of more than 600% in the last 1 year. (as on 24 September 2015)[9]
  • Lanco Industries: A return of more than 400% in the last 1 year. (as on 24 September 2015)[9]
  • Shreyas Shipping & Logistic: A return of more than 500% in the last 1 year. (as on 24 September 2015)[9]
  • Symphony Limited: A return of more than 9,000% in the last 10 years. (as on December 5, 2016)[10]

References[edit]

  1. ^ "Define Multibagger Stocks. How Do You Indentify [sic] A Multibagger?". Retrieved 2015-09-25.
  2. ^ Lynch, Peter (1988). One Up On Wall Street. New York, NY: Simon & Schuster Paperbacks. p. 32. ISBN 978-0-671-66103-8.
  3. ^ "Tenbagger Definition | Investopedia". Investopedia. Retrieved 2015-10-16.
  4. ^ "Top 6 Multibagger Stocks - Top Quality Share For Top Returns". Multibagger Calls. Retrieved 2015-12-13.
  5. ^ "EFOI Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 2015-10-16.
  6. ^ "EBIX Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 2015-10-16.
  7. ^ "EXPE Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 2015-10-16.
  8. ^ "NFLX Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance". finance.yahoo.com. Retrieved 2015-10-16.
  9. ^ a b c d e "Markets Stats - The Economic Times". Retrieved 2015-09-25.
  10. ^ Business, Money 'n'. "OMG! 90,000% Return on your Equity Investment in 10 years!". Retrieved 2017-06-07.

Further reading[edit]