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I've got a couple and it does typically take a long time to reach a "10 bagger" return just like you mentioned 30 years of holding 3M. My 10 Bagger winners were purchased in the mid 1990's and one thing about having 1000 percent return equities is it goes against most financial planner or even trader advice that if you have a 100% return you would sell. The other thing about holding a 10 bagger is there can be years where the co. stock struggles but I am still holding these investments simply because after my DD I would purchase these again. One of my winners is struggling simply because of valuation, I am kicking myself a bit because before the drop I had noticed the valuation seemed quit high but talked myself into that global economies are strong and despite the US in the late stage business cycle spending would still be brisk. As long as the fundamentals are still intact there will be increase.
Peter Lynch was the first I saw using the term "10-bagger".
Have you ever owned one? I guess I could qualify because I owned 3M for 30 years and got 16 bags. But I was pretty young and pretty broke when I bought it so there wasn't much money inlvolved.
I have a "5-bagger". Bought BEAT at 17, 4 years ago. close to 80, now.
What would you do if you KNEW that you had one? How would you handle it, and how would you sell it? The possibilities are all over the place, but what would YOU do? Giving your age group may help the discussion. I'm 73 so my thinking may be different from yours....
OK. 10 bags in 5 years. What would you do?
I have a 10-bagger (within 5 years) scan & at one point had devoted up to a third of my portfolio to it.
Had around a 20% success rate, but the timeline wasn't long enough to draw any conclusions from it.
Anyway, what typically would happen was:
1. Didn't put in enough upfront (but later fantasized what if I dropped 10k on the trade that I had no way of knowing was the 10-bagger beforehand).
2. Tended to chase after I KNEW it was going to pop (typically overextending my overall percentage of the portfolio to a 10-bagger pick). I am still trying to break my bad habit of chasing stocks to this day.
3. Held when I should've sold when they popped smaller than they "should have" leaving me with losses or a much smaller gain. Had a 5-bagger that I got skittish on and sold half at a loss & the other half once it fell to a 3-bagger all because it didn't act the "way it should have acted" at the time.
4. Broke my rules in general of get in low & sell once it reaches 10-bagger status no matter if it keeps going up. Lost a 15-bagger for a total loss when I broke my rules & decided I wanted it for a long-term holding midstream (it looked like a possible 100-bagger at the time).
5. Tended to get bored (especially losing on 4 picks for the hope of #5) so I sold early to "find something better" now. Had this happen recently when I sold a pick from last year at a small loss & just happened to notice it the other day & it's already a 4-bagger. Psychologically I can't really deal with multiple total loss scenarios so even if I knew that 1 of every 5 10-bagger picks would work out with complete certainty I'm still not sure I could do it.
While thinking about 10-baggers (or more) is fun in practice these days I focus more on solid 2 or 3-baggers & maybe put down say 1% to 5% on a single 10-bagger pick for the excitement factor (and being prepared for a total loss on it) if I make any of these picks at all. My system doesn't really allow for it, but sometimes I just can't help myself.
As it is I tend to fiddle with my portfolio too much & if there is one thing I know it's jumping in and out of the market too much means losses most of the time.
These two stocks were not picked by lottery. I used the business knowledge I have gathered over a lifetime and pored over financials of various companies until I found what I was looking for. In the process, I bought companies that had to be sold when they did not perform as I thought they would. If I had not done the WORK associated with continuously analyzing my chosen investments, I would not have realized that it was time to sell.
You know sometimes it bothers me that the market decouples from the financials so much these days, but other times I'm happy that you can invest in trash sometimes and still make money.
The only things I know for certain to be successful in the market are:
1. Think differently.
2. Put in the work.
3. Have the stomach for it.
Good call on BEAT. Had a regular screen return it for me this year, but too far down the list to matter.
Peter Lynch was the first I saw using the term "10-bagger".
Have you ever owned one? I guess I could qualify because I owned 3M for 30 years and got 16 bags. But I was pretty young and pretty broke when I bought it so there wasn't much money inlvolved.
I have a "5-bagger". Bought BEAT at 17, 4 years ago. close to 80, now.
What would you do if you KNEW that you had one? How would you handle it, and how would you sell it? The possibilities are all over the place, but what would YOU do? Giving your age group may help the discussion. I'm 73 so my thinking may be different from yours....
OK. 10 bags in 5 years. What would you do?
5? I have practically a ten bagger in 1 year. At-least a 7 bagger. It's not a big deal. I'm hanging onto it. It probably is the top 52 week performing stock in the entire stock market.
Today, NVTA is on a roll. I listened to the quarterly conference call and read the financials so I am confident that NVTA will someday return $500,000 in return for the $50,000 that I put in to it. In fact, I expect it to return 10 bags fairly quickly.
If it works out for you, then that's great. However, it is very risky to put all your eggs in one basket.
I see that the NVTA declined 70% from February 2015 to February 2016, and went nowhere for 2 years. A company can fail and its stock and your account balance will literally go to zero.
This is why it is not considered a sound investment strategy.
................Anyway, what typically would happen was:
1. Didn't put in enough upfront.........
2. Tended to chase after I KNEW it was going to pop (typically overextending my overall percentage of the portfolio to a 10-bagger pick). I am still trying to break my bad habit of chasing stocks to this day.................
As it is I tend to fiddle with my portfolio too much & if there is one thing I know it's jumping in and out of the market too much means losses most of the time.
I used to fiddle with it. Then I started making and keeping spreadsheets and evidently the ability to look back and see where I have been makes that much difference.
I bought CLNE, but noticed that Liquefied Natural Gas wasn't selling well and sold at $13.11. $2.25 today and going nowhere.
I got discouraged with NVTA but knew where they were coming from so I held fast. There are a total of 69 lines of data going back to 2014 on that spreadsheet. I bought it in 2017 and 18 and accumulated data from the old 10Ks and 10Qs. There are even competitor's notes on that spreadsheet.
I don't tiptoe into the market. Typically I will go in with 50K and rarely own more than 2 stocks. But I have cash and some other sources of income, so I am not necessarily recommending that approach.
You know sometimes it bothers me that the market decouples from the financials so much these days, but other times I'm happy that you can invest in trash sometimes and still make money.
The only things I know for certain to be successful in the market are:
1. Think differently.
2. Put in the work.
3. Have the stomach for it.
Good call on BEAT. Had a regular screen return it for me this year, but too far down the list to matter.
Just wanted to highlight what you said. Yes, it is my hobby, but things have to be done. Investors tend to just guess and then hope.
BEAT has been good, but I expect the growth to slow down. It may take a long time to go from 80 to 160.
Just wanted to highlight what you said. Yes, it is my hobby, but things have to be done. Investors tend to just guess and then hope.
BEAT has been good, but I expect the growth to slow down. It may take a long time to go from 80 to 160.
I'd really be more impressed if you stopped talking about things that have done well that you bought and start talking about things that will do well that you WILL INVEST IN . Hindsight...is always 20/20.
LOL..we never get threads started on here by folks saying "hey i invested in this stock and it fell apart so I unloaded it"
Am I dumbass or what?
No... we just get these subtle (pat myself on the back ) threads
I'd really be more impressed if you stopped talking about things that have done well that you bought and start talking about things that will do well that you WILL INVEST IN . Hindsight...is always 20/20.
LOL..we never get threads started on here by folks saying "hey i invested in this stock and it fell apart so I unloaded it"
Am I dumbass or what?
No... we just get these subtle (pat myself on the back ) threads
You have not actually read the thread, have you?
You want someone to tell you what you should buy? In the future? Really? And you think I would know that?
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Hindsight...is always 20/20. 
