posted on 06-06-2019

10 Bagger

Updated July 12, 2019
Written By
Paul Tracy

What is a 10 Bagger

A 10 bagger is a stock that increases in value by at least 10 times its purchase price, or by at least 900%. 

The term 10 bagger was coined by legendary fund manager Peter Lynch in his best-selling book, "One Up on Wall Street."

Any stock that appreciates ten-fold from the date an investor initially purchased it can be referred to as a 10 bagger. Although such investments are a rarity on Wall Street, investors often seek out companies with tremendous growth potential in the hopes of finding the next 10 bagger for their individual portfolios.

How Does a Stock Become a 10 Bagger

If a company's stock is priced at $20 per share and it increases in value to $200, then it is a 10 bagger.

Similarly, if an investor purchases a stock for $5 per share and it increases in value to $50, then it is also a 10 bagger.

 

Recent 10 Bagger Examples

It is rare for a company's share price to increase so drastically. Notable examples of 10 bagger stocks that have experienced such success in the recent past include:

Wal-Mart (WMT) -- increased in price from $10 per share in 1991 to more than $100 per share in 2018

Apple (AAPL) -- increased in price from $17 per share in 2007 to more than $170 per share in 2019

Microsoft (MSFT) -- increased in price from $11 per share in 1997 to more than $110 per share in 2019

Facebook (FB) -- increased in price from $20 per share in 2012 to more than $200 per share in 2018

Alphabet / Google (GOOG) -- increased in price from $120 per share in 2005 to more than $1,200 per share in 2018