Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

10 Bagger

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