Tenbagger

A term coined by Peter Lynch in “One Up on Wall St”. It refers to stocks that return ten times the original investment.

Tenbaggers are usually growth stocks that, over time, experience an steady, large growth in earnings, leading an appreciation in stock price.

According to Peter Lynch, tenbaggers are not all tech stocks, in fact, many of them are in consumer goods and an observant investor may be able to notice them in his everyday life before Wall St analysts do. However, in his book, he notes that many promising stocks never turned out to be tenbaggers. The quest for a tenbagger may lead to plenty of frustration.  Many stock promoters promise a stock to be a future tenbagger in order to attract the eyeballs and wallets of investors.

You can refer to “One Up on Wall St” for more details on how to find a potential tenbagger. Keep in mind that these stocks may take years before they start performing and even more time to generate large returns. Nabbing a tenbagger will take patience.