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A multibagger is a term coined by Peter Lynch, one of the world's most renowned investors. He used this term in his book u201cOne up on Wall Street.u201d This term he borrowed from baseball.
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#StocksToBuy#stocks#StockMarket#krishaIncap • #krishafinance#investment#Multibagger#Nifty • #Demat • MultibaggerStock • AmultibaggerisatermcoinedbyPeterLynch,oneoftheworld'smostrenownedinvestors.Heusedthisterminhisbook“OneuponWallStreet.” Thistermheborrowedfrombaseball. • Multibaggerstock • Aninvestmentthatdeliversseveraltimeshigherreturnsthantheoriginalinvestment,e.g.100%ormorereturnsinashortperiodoftimeisconsideredamultibagger.Thesestocksareusuallyundervalued,havestrongfundamentals,andhavehighgrowthpotential. • HowtofindMultibaggerstocks • Beingprofitable,thesestocksarenotaseasytofindout.Oneneedstofollowcertainindicatorstoidentifytherightstock. • P/Eratio • Itisimportanttoanalyzeastock'scurrentprice-to-earnings(P/E)ratioinordertoidentifyamultibagger.MostmultibaggerstocksgrowtheirP/Efasterthantheirstockprice. • DebtLevels
Businesseshavedifferentlevelsofdebt,sothereisnobenchmarkregardingoptimallevelsofdebt.Ideally,acompanyshouldhaveadebtequityratioofnotmorethan30%.Businesseshavedifferentlevelsofdebt,sothereisnobenchmarkregardingoptimallevelsofdebt.Ideally,acompanyshouldhaveadebtequityratioofnotmorethan30%. • PerformanceHistory • Anenterprisewithlowrevenuesthatisperformingwellmeansithashugegrowthpotentialinthefuture.Inordertopredictfuturetrends,mostanalystslookatthecompany'spastperformance. • Competitiveadvantage • Itismuchmorelikelyforabusinesstobecomeamultibaggerifithasacompetitiveadvantage.Competitiveadvantagehelpsthebusinesscapturemoremarketshareandincreaserevenuesaswellasprofitability. • Industry • Ifyouwanttofindmultibaggerstocks,pickstocksfromanindustrythatyouthinkwillgrowsubstantiallyinfivetotenyears.Thereislesslikelihoodoffindingmultibaggerstocksinanindustrythatisexpectedtofaceobstaclesandsetbacksinthenearfuture.Youshouldthereforeinvestinstocksinindustrieswithahighgrowthpotential. • Theseweresomeoftheindicatorstohelpyouinresearchingthemultibaggerstock.Onlyinvestorswithpatiencecanbenefit
fromitinthelongrun.Inaddition,investorsshouldbepreparedtoassumeassociatedrisks.fromitinthelongrun.Inaddition,investorsshouldbepreparedtoassumeassociatedrisks. Formoreinformationandupdatesofstockmarket,visitatKrisha.finance