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what is a ten bagger stock

by Tabitha Lesch Published 3 years ago Updated 2 years ago
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A tenbagger is a stock that has returned 10 times the initial investment. The “bagger” part of the term comes from baseball in which a base is sometimes called a “bag.” 1 A twobagger would correlate to hitting a double (returned two times) and a fourbagger would mean a home run (returned four times the investment).

A 10-bagger is an investing term first used by famed Fidelity mutual fund manager, Peter Lynch, in the 1980s and 1990s. It describes a stock that returns a 1000%. That would entail an investor buying a stock at $10 and watching it go to $100, for example.Nov 3, 2021

Full Answer

What are 10 Bagger stocks?

May 25, 2021 · A 10 bagger is a term used to describe an investment (such as stock) that increases in value by 10 times its initial purchase price. More simply, 10 bagger stocks are investments that have a 1000% return on investment (ROI).

What is a tenbagger in investing?

Dec 27, 2021 · A tenbagger is a stock that has returned 10 times its initial investment to investors. The term was popularized by investor and money manager Peter Lynch in 1989. His philosophy is to invest in small growth stocks that are under followed by Wall Street.

Should you invest in a 10 Bagger?

Nov 04, 2021 · We call these stocks “10 baggers” because these stocks return tenfold your original investment. You cannot expect every company to be a 10 bagger, but these companies certainly do exist. So, how do you find them? In all reality, you need to find the perfect storm.

What is a A10 Bagger?

Mar 24, 2021 · It refers simply to any stock that will run 10 times higher than what you paid for it, and Lynch, who amassed annualized returns of 29.2% between 1977 and 1990 while helming Fidelity's Magellan...

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What percentage is a 10-bagger?

a 1,000%What is a Ten Bagger? Ten bagger refers to an investment that generates a return of ten times the amount of the initial investment, i.e., a 1,000% return on investment (ROI) It is most commonly measured as net income divided by the original capital cost of the investment.

Where can I find ten bagger stocks?

0:268:59How to Find 10 Bagger Stocks Before They BREAK OUT - YouTubeYouTubeStart of suggested clipEnd of suggested clipIt's guys there are multiple ways in which you can look at stocks. We are value investors we'reMoreIt's guys there are multiple ways in which you can look at stocks. We are value investors we're chart readers. And we're also something called momentum traders which we're getting into right.

What are Motley Fool's 10 best stocks?

10 Stocks to Sell According to Motley FoolChewy, Inc. (NYSE:CHWY)Copart, Inc. (NASDAQ:CPRT)Wayfair Inc. (NYSE:W)Peloton Interactive, Inc. (NASDAQ:PTON)Pinterest Inc. (NYSE:PINS)Feb 6, 2022

What is a 5 bagger in stocks?

These are stocks that have the potential to report explosive growth and generate multiple bags of money over a period of time. For example, a five bagger stock is a stock that gives a return of 5 times the original amount invested, and a ten bagger would give a return ten times more than the initial investment.

How can you tell a ten bagger?

A return of 10 times is equal to a 1,000% return on the initial investment. For example, if you bought one share of Company ABC stock for $100 and the share price grew to $1,100 per share, it would be considered a tenbagger because your investment grew by 1,000%.

What is a 100 bagger stock?

Over the past few years, the idea of 100-baggers has gotten popular. This is an amazing concept; making a 100-times return on your investment. Put another way, if you have $10,000 and get a 100-bagger, you'll end up with a million dollars.Nov 8, 2021

Which stocks Will Make Me Rich?

7 Stocks to Buy That Will Make You Rich by 2030Applied Materials (NASDAQ:AMAT)Coinbase Global (NASDAQ:COIN)Intel (NASDAQ:INTC)Altria Group (NYSE:MO)Novartis (NYSE:NVS)Pfizer (NYSE:PFE)StoneCo (NASDAQ:STNE)Nov 15, 2021

Which stocks will rise in 2022?

A Closer Look at the Best Growth Stocks to Invest in 2022Lucky Block - Start-Up Blockchain Asset Decentralizing the Lottery Industry. ... Meta Platforms - Best Growth Stock to Buy Now for Exposure to the MetaVerse. ... Tesla - Tesla - Top Growth Stock for the Future of Electric Cars.More items...•Mar 24, 2022

What stocks will grow in 2022?

Fastest Growing StocksPrice ($)Revenue Growth (%)EQT Corp. (EQT)30.74235.7Upstart Holdings Inc. (UPST)115.45252.0Boston Properties Inc. (BXP)129.789.92 more rows

What does a 20 bagger mean?

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. This term is especially common when discussing high-growth industries and emerging markets such as the BRICS.

What is a four bagger in stocks?

Definition: Stocks that give returns that are several times their costs are called multibaggers. These are essentially stocks that are undervalued and have strong fundamentals, thus presenting themselves as great investment options.

What is a 2 to 4 bagger?

2-Bagger: 100% gain. 3-Bagger: 200% 4-Bagger: 300%Mar 29, 2006

What is a tenbagger?

A tenbagger is an investment that appreciates in value 10 times its initial purchase price. The term “tenbagger” was coined by legendary fund manager Peter Lynch in his book One Up On Wall Street. 1.

How does sovereign action affect stock prices?

Sovereign action : Sovereign or government action can have a huge effect on stock prices. Regulations and new laws can create and destroy markets and even trends. It is critical that a potential tenbagger be supported by, or at least not be impeded by, government regulations.

How much did Peter Lynch invest in Tenbaggers?

Over this period, Lynch achieved a 29.2% average annual rate of return, which meant that $1,000 invested when Lynch started managing the fund in 1977 would have grown to $28,000 by the time he left it in 1990. 2 3

Why is Tenbagger called Tenbagger?

Thus “tenbagger” represents two home runs and a double or the stock equivalent of a hugely successful baseball play.

What does ten bagger mean?

A ten bagger is a stock that increases in value by 10 times its original purchase price, or an equivalent of at least a 900% gain. The term ten bagger was originally coined by Fidelity fund manager, Peter Lynch, who ran the Magellan fund, in his book ‘One Up On Wall Street’.

How does a stock become a ten bagger?

A stock becomes a ten bagger when the share price increases 10x or by at least 900% from the initial investment.

What ten bagger stocks have in common

Ten-bagger (or 10-bagger) stocks often have similar things in common. Here are several I’ve found:

How to find ten bagger stocks

Finding ten bagger stocks is possible if you’re willing to do the work. I have multi bagged many stocks that went on to become ten baggers (sadly after I’d sold them).

3 examples of ten bagger stocks

I first bought Creightons in 2016 when the price was around 6p. In 2021, the stock traded above 90p, which would’ve been a 15-bagger if I’d held.

Tenbaggers Explained

Mike Price is a personal finance writer with more than six years of prior experience working in the banking industry. He specializes in writing about investing, real estate and accounting for The Balance. His work has also been featured in other notable financial websites such as The Motley Fool.

Definition and Examples of Tenbaggers

A tenbagger is a stock that has returned 10 times the initial investment. The “bagger” part of the term comes from baseball in which a base is sometimes called a “bag.” 1 A twobagger would correlate to hitting a double (returned two times) and a fourbagger would mean a home run (returned four times the investment).

How Tenbagger Stocks Work

Peter Lynch’s philosophy for pursuing tenbagger stocks included a few main tips:

Tenbaggers vs. 100 Baggers

Fund manager Chris Mayer published his book “100 Baggers” in 2018. Mayer studied all the stocks that have returned investors over 10,000% and identified common traits. 6

What It Means for Investors

Investors can consider Lynch's tenbagger stock investing strategy when looking to build their portfolio. It may not be right for every investor, and returns are never guaranteed.

Why are starter stocks so hard to invest in?

The Starter Stocks are a hidden gem for investors because it is a sample portfolio of stocks that are well-diversified and well-established. Building a portfolio can be difficult because there are so many decisions to make when you are trying to invest in an industry that you do not fully understand.

Why is the Fool so successful?

The Fool has done so well because they quickly identify stocks year that will perform well in the current environment. THAT is how the Fool consistently does so well--they adapt and constantly pick stocks before everyone else realizes the opportunities.

How to mitigate risk in portfolio?

Another way to mitigate risk in your portfolio is by balancing: Growth stocks; Value stocks; and. Income-generating stocks. For example, a portfolio comprised entirely of growth stocks will be very volatile because of the nature of high-growth companies.

What is the most important concept to understand when building a portfolio?

Diversification . Diversification is probably the most crucial concept to understand when you are building a portfolio. For example, let's look at two hypothetical portfolios – both have ten different stocks in them.

Is Fiverr up in 2020?

Fiverr (FVRR) originally picked September, 2020 and it is up 177%. Shopify (SHOP) picked March, 20216 and it is up 4,432%. Normally the Fool service is priced at $199 per year but they are currently offering it to new subscribers for just $99/year if you click this link *.

What is CRISPR technology?

CRISPR technology, a gene-editing technique, is arguably the single most exciting innovation the public can invest in today. In short, researchers have discovered a way to hack nature – and not just nature, but human biology. CRISPR genome editing enables the precise customization of human DNA sequences, a breakthrough with the gargantuan potential to eliminate inherited disease as we know it. Editas is one of several first-movers in the field, alongside Crispr Therapeutics ( CRSP) and Intellia Therapeutics ( NTLA ), although Editas ostensibly has the upper hand in intellectual property. With the holy grail of solving inherited disease at stake, any one of these companies could be worth hundreds of billions of dollars in the future. An agnostic and patient investor might take a stake in all three, but the $3 billion Editas, which is already in clinical trials for a gene-editing medicine targeting Leber congenital amaurosis 10 (LCA10), a leading cause of childhood blindness, is off to a good start.

What is a 10 bagger?

Peter Lynch, arguably the greatest mutual fund manager and growth investor ever, coined the term "10-bagger" in his 1989 investing classic, "One Up on Wall Street." It refers simply to any stock that will run 10 times higher than what you paid for it, and Lynch, who amassed annualized returns of 29.2% between 1977 and 1990 while helming Fidelity's Magellan Fund, had his share of experience with them. Such exorbitant returns require patience, time and a high tolerance for risk. But even in 2021's frothy market, there are sure to be many stocks that jump at least 900% over the span of a decade. Although the following names are risky stocks, each has the potential to post blockbuster returns in the coming years. Here are six potential 10-bagger stocks to buy and hold for the next decade.

Which stock could end up 10 bags?

Fisker ( FSR) The last of the risky stocks that could end up 10-baggers over 10 years is Fisker, the $5 billion electric vehicle company that has one of the more binary futures on this list.

Is Fiverr cheaper than braces?

The company claims its nighttime aligner treatment is up to 60% cheaper than braces. Although unprofitable at the moment, analysts expect the company to progress rapidly toward profitability in the coming years. Fiverr International ( FVRR) If you're bullish on the gig economy, you'll like Fiverr's business.

What is CRISPR technology?

CRISPR technology, a gene-editing technique, is arguably the single most exciting innovation the public can invest in today. In short, researchers have discovered a way to hack nature -- and not just nature, but human biology. CRISPR genome editing enables the precise customization of human DNA sequences, a breakthrough with the gargantuan potential to eliminate inherited disease as we know it. Editas is one of several first-movers in the field, alongside Crispr Therapeutics ( CRSP) and Intellia Therapeutics ( NTLA ), although Editas ostensibly has the upper hand in intellectual property. With the holy grail of solving inherited disease at stake, any one of these companies could be worth hundreds of billions of dollars in the future. An agnostic and patient investor might take a stake in all three, but the $3 billion Editas, which is already in clinical trials for a gene-editing medicine targeting Leber congenital amaurosis 10 (LCA10), a leading cause of childhood blindness, is off to a good start.

What is Pinduoduo ecommerce?

It's a Chinese mobile-based e-commerce company specifically focused on connecting agricultural producers to consumers. Pinduoduo is a way to bet on China, the fastest-growing major global economy in the world, the growing Chinese middle class, e-commerce and the ever-present demand for food and groceries in one play.

How much is Pinduoduo worth?

Pinduoduo, at about $160 billion, is not your typical 10-bagger candidate. But it has been growing like a weed, with shares already up more than 400% since their U.S. trading debut less than three years ago. It's a Chinese mobile-based e-commerce company specifically focused on connecting agricultural producers to consumers. Pinduoduo is a way to bet on China, the fastest-growing major global economy in the world, the growing Chinese middle class, e-commerce and the ever-present demand for food and groceries in one play. Gross merchandise volume soared 66% in 2020 to $255.6 billion, and PDD just surpassed e-commerce behemoth Alibaba Group ( BABA) in annual active users with 788 million. Ten years from now, trillion-dollar companies won't be the rarity they are today, and the fast-growing Pinduoduo could feasibly grow into a $1.7 trillion valuation in that time.

How much is the Fisker Ocean SUV?

The Fisker Ocean SUV, expected in November 2022, is expected to retail for a starting price of $37,499, and its goal is to produce the world's most sustainable vehicle. To that end, a photovoltaic solar roof is optional. Our goal is to create a safe and engaging place for users to connect over interests and passions.

What is a 10 bagger?

Peter Lynch, arguably the greatest mutual fund manager and growth investor ever, coined the term "10-bagger" in his 1989 investing classic, "One Up on Wall Street." It refers simply to any stock that will run 10 times higher than what you paid for it, and Lynch, who amassed annualized returns of 29.2% between 1977 and 1990 while helming Fidelity's Magellan Fund, had his share of experience with them. Such exorbitant returns require patience, time and a high tolerance for risk. But even in 2021's frothy market, there are sure to be many stocks that jump at least 900% over the span of a decade. Although the following names are risky stocks, each has the potential to post blockbuster returns in the coming years. Here are six potential 10-bagger stocks to buy and hold for the next decade.

Is Fiverr cheaper than braces?

The company claims its nighttime aligner treatment is up to 60% cheaper than braces. Although unprofitable at the moment, analysts expect the company to progress rapidly toward profitability in the coming years. Fiverr International ( FVRR) If you're bullish on the gig economy, you'll like Fiverr's business.

How much is a 10 bagger?

At $50,000, of course, it's a 10-bagger. Image source: Getty Images. The idea of a multibagger is thought to have started with Peter Lynch, who referred to "10-baggers" in his seminal investing book, One Up on Wall Street. The term stems from baseball, in which players rack up "bags" by running around the bases.

What is a multibagger?

A multibagger is an investment that has gained several times its original value. Each "bag" represents your entire original investment. So if you invested $5,000 in a stock and your holding is now worth $10,000, you have a two-bagger. If it continues to appreciate and is eventually worth $35,000, it's a seven-bagger.

What does 100% gain mean?

If you have a $100 investment that grows by 100%, that means it tacks on another $100 in value, now totaling $200. So your 100% gain is a two-bagger because it doubled your money.

Who is Selena Maranjian?

Selena Maranjian has been writing for the Fool since 1996 and covers basic investing and personal finance topics. She also prepares the Fool's syndicated newspaper column and has written or co-written a number of Fool books. For more financial and non-financial fare (as well as silly things), follow her on Twitter...

Is Berkshire Hathaway a multibagger?

Many future multibaggers are right under your nose, and they don't always look like multibaggers .

Is Netflix a multibagger?

Many future multibaggers are right under your nose, and they don't always look like multibaggers. Netflix has been a volatile eight-bagger over the past five years, and Wal-Mart is a 10-bagger over the past 20 years, though it's only a two-bagger over the past decade.

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