Multibaggers

Multibaggers refer to Stocks or investments that have the potential to increase in value multiple times, typically more than twofold, over a specific period. The term is often used in the context of the Stock market to describe investments that deliver substantial Returns, significantly outperforming the broader market or indices.

Multibaggers are usually identified by their strong fundamentals, innovative Business Models, and growth potential. Investors look for these Stocks to maximize Returns on their investments.

Examples:

• Amazon (AMZN): Initially a book-selling website, Amazon transformed into a global e-commerce giant, resulting in substantial Stock appreciation.
• Apple (AAPL): From its early days, Apple’s growth in technology and innovation led to a dramatic increase in its Stock price, making it a multibagger for long-term investors.
• Tesla (TSLA): As a pioneer in electric vehicles, Tesla’s Stock has seen explosive growth, particularly in the 2010s, making it a classic example of a multibagger.

Case Study: Infosys

Infosys, an Indian Multinational Corporation providing IT services, is a notable multibagger. Since its IPO in 1993, the Stock price has increased significantly, offering early investors remarkable Returns due to the company’s consistent growth and market expansion.