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.
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. Archived from the original on August 22, 2015. Retrieved 2015-10-10.