Multibagger Stocks – Don’t just Buy it…(Part I)

From last few days I am coming across this most popular word of market “Multibagger Stocks“.  Most of you must be well aware of this word, but who are new or not understood the meaning of this word, let me explain them.

Generally, any stock which has great potential to give you multifold exponential returns in future are called as Mutibagger Stock or Multibagger Idea. It has various interpretations and understanding from different class of people, and accordingly expectations are different.  In general, if any stock gives more than 50% return (ideally 100%) than it qualifies for Multibagger idea.  Simple rule applies here, stock which has potential to outperform underlying asset, in our case it is Nifty or Sensex.

How you can determine which stock has a potential to become multibagger?

It all depends on your analysis, here, I am not going to dealt with that subject.  What I am trying to say here is, don’t buy any multibagger idea, just on its surface, do your in depth research and then invest your hard earned money.  Because, for that matter any person can give you one idea, and it has equal chance to perform or under-perform,  again it depends on many factors, but you cannot blame to the person who has recommended you the Idea, ultimately you are at a loss.

I have more to say on this….will continue in next part.

The following two tabs change content below.
We are covering Major Equity, Forex& Commodity Markets, Way2Profits filters information and streams meaningful conclusions right to your inbox. Technical Research is our realm and we fathom the depths.

Latest posts by way2profits (see all)