What it is:
A tenbagger is athat increases by a of ten.
How it works (Example):
Let's say Company XYZ is trading at $5 a share. John Doe buys 100, costing $500. Six months later, the company announces it has found the cure for cancer. The rises to $50 a share -- a tenfold increase. John has a tenbagger on his hands.
Investor Peter Lynch coined thein his book "One up on : How to Use What You Already Know to Make in the ."
Why it Matters:
Everybody wants a tenbagger, but so few of us ever get one. Typically, they are companies that invent or sell "the next big thing" and that only happens once in a blue moon.