What are Multibagger Stocks?
Multibagger Shares can be defined as stocks that have the potential to generate returns multiple times their original investment value. These are the stocks that can turn a small investment into a significant fortune over time. Investors seek multibagger stocks because they offer the promise of exceptional capital appreciation, often outperforming the broader market by a wide margin. The term “multi-bagger” is derived from the idea that your investment grows like a bag that multiplies its value several times.
Geeky Takeaways:
- Multibagger stocks typically belong to companies with strong growth potential.
- Achieving multibagger returns often requires a patient and long-term investment approach.
- While multibagger stocks offer significant upside potential, they also come with higher risks.
Table of Content
- What Characteristics Should a Company Possess to Generate Multibagger Shares?
- Why Should you Invest in Multibagger Stocks?
- Risks Associated with Multibagger Shares
- Conclusion