How to Find the Next 10 Bagger Stocks? + Definition

Trading concepts

10 bagger stocks

Are you worried about how to find 10 bagger stocks? We are here to help you out easily. Here is a blog that will help you out!

A detail about 10-bagger

Fidelity mutual fund manager Mr Peter Lynch used this term for investing in the 1980s and 1990s. This term describes the stock that gives a return of 1000%. This usually entails an investor buying the stock at almost $10 and watching it going to $1000.

Going back to the 1980s, the real meaning of this thing was to buy a company having growth. But on its valuation basis, the company was cheap. Do you know that in the last decade, both Netflix and Tesla were 10-baggers?

How Can I Find 10-Bagger Stocks?

There is no way for screening the 10-baggers; all a person needs to do is be lucky enough. For example, you were a person who went to McDonald’s in the 1970s to buy something, and out of nowhere, you thought to buy the stock.

Similarly, it can also mean that you have brought Starbucks if you were in the 1990s. And now it is reaching the skies of success. But the main point to remember about 10-baggers is making sure that you are buying it early. Many strong consumer brands do the same.

Easiest Way to Find the 10 Baggers Stocks

Do you know how to find the “10-bagger” stocks? We are here to help you. We believe in finding the potential. It means that make sure that the stocks you will invest in will return. They must return at least 10 times more than that of your initial investment. It is a really easy thing!

How to Set a Goal?

There are a lot of interested people who set a goal to seek stocks. They hope that stocks can reach easily arbitrary 10-bagger positions. But this thing is too conservative.

Have you heard about the author of “100 Baggers”? In an interview, he said there are common traits of stocks. And in the book, they are present. There is a full discussion about 365 stocks multiplied by 100 times than investment. Moreover, these stocks are still on the rise of the stock market.

So, you must set a goal of earning thousands rather than hundreds from the stocks. Even many stockholders have seen an increase in their stocks in the past few decades.

Find the Businesses First

Business realities

There is a large market for every business. Most businesses rise daily. Firstly, if you want to realize the best and most profitable gains. Then you will have to find businesses that are chasing fast-growing markets that are total addressable.

You must compare them to current market capitalizations as well. Moreover, make sure that these businesses are also well-liked, have unique products, and are innovative. Make sure that these have products that are capable of taking market share. From where? From larger industry incumbents, you can address them out for new markets.

Median Market Caps

This helps a lot if the businesses have medium or small market size capitalization to start. Generally, this is a much easier thing. Especially for the modest-sized business for multiplying the money of investors 10 times. For example, a business has $1 billion, and it will have $1 trillion. And any business can accomplish it at the same feat.

Do you know that the average 100-bagger started having almost $399 million in revenue? And the market cap was almost $500 million. These figures are now at higher adjustments and increased median market caps in previous decades.

Today, you must search for businesses that have a market cap of almost $20 billion, or you may say less than that. Do you know that Apple also became a 13-bagger from last decade last year? And the start was from a $200-billion base.

Stocks That Can Generate Revenues

The most important thing that you must also look at is the stocks. Those stocks that are underlying any business that possesses optionality. They possess it for generating new revenue streams and also further stock returns.

There are several questions that you must also ask yourself:

  1. Can any company’s primary products easily adapt to tackling additional verticals new industries within their core markets?
  2. Does the company have multiple market-disrupting products?
  3. Is the business making acquisitions for expanding the supplement organic growth and reach?

Time Horizons

You must also consider the time horizons. If you own 10-bagger stocks. Then it can be a tough part. The thing is that you will have to recognize that many multi-bagger returns take years and a lot of time to become fruitful.

Believe for Exceptions

There are a lot of competitive investors who have more than 10-bagger stocks in their portfolios. These stocks have been there for decades. And many of them took decades to reach or exceed the 10-bagger stocks status.

But you must believe in exceptions as well. You can add small shares and relatively big shares to your stocks. The bulk of the return is waiting for you. So, we suggest that you believe in exceptions and hold for the best. Always check on different stocks, and buy the best ones when they are down.

Does getting 10-bagger stocks depends on luck?

Most people think that to land 10-bagger stocks is just based upon luck. But it is not luck, and rather, it is a safe play. Successful people always make the way in buying the stock. However, it will take a very long time to get the benefit. But once you have invested, you can get many benefits through these stocks. So, we suggest you to but the stocks as soon as you can.

As soon as the prices go down, it’s your time to buy the stocks.

Conclusion

10 Bagger Stocks can easily be gained if you play smart. There are a lot of people who became famous and rich due to quick thinking and best analyzing powers. You can also be one of them by right investment.

Russell Crane

Russell Crane

Russell is an Algorithmic & Technical Analyst Trader @ PatternsWizard.
His passion is to share his knowledge about TA, patterns & more. Why hope for your trading to work when you can precisely know the performance stat of every pattern?

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