Tenbagger stock analysis | 4 traits of ten-bagger" stocks & how to find 10bagger stocks скачать в хорошем качестве

Tenbagger stock analysis | 4 traits of ten-bagger" stocks & how to find 10bagger stocks

What Is a Tenbagger? A ten-bagger 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. While tenbagger can describe any investment that appreciates or has the potential to increase tenfold, it is usually used to describe stocks with explosive growth prospects. Lynch coined the term because he is an avid baseball fan, and “bag” is a colloquial term for a base. Thus “tenbagger” represents two home runs and a double or the stock equivalent of a hugely successful baseball play. Tenbagger stock analysis -A tenbagger is Peter Lynch's term for an investment that returns 10 times its initial purchase price. -Tenbaggers start out as stocks that have strong earnings growth but still trade at reasonable valuations. -Finding tenbaggers requires learning about the industry. A growing industry will have more potential tenbaggers than a mature industry with established players. Traits of ten-baggers Peter Lynch identified and invested in numerous tenbaggers when he was the manager of the Fidelity Magellan Fund from 1977 to 1990. As a result, the Magellan Fund grew from $18 million in assets when Lynch took it over to $14 billion when he left in 1990. 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. Lynch preferred stocks that had a price-to-earnings (PE) ratio below the industry mean and less than its five-year average. He also looked for stocks where the five-year growth rate in operating earnings per share (EPS) was high but below 50%. His reasoning was that such earnings growth rates were not only unsustainable, but companies growing at this pace would attract competition. In a PBS interview in 1996, Lynch cited Wal-Mart as an example of a tenbagger that investors had plenty of time to buy. He said that investors who had purchased Wal-Mart 10 years after it went public in 1970 would have still made 30 times their money. Subscribe to my channel and let me know what you think about the video in the comments. Thank you.