How hard is it to find a 100 Bagger?
Did you know the fastest hundred baggers, meaning stocks that went from 10 Rupees to 1000 Rupees, took a minimum of 4 years to grow, whereas an average 100 Bagger takes 26 years to grow?
Spotting a potential bagger is relatively more manageable, but again, time and now, there has always been a huge weightage on the ability to sit with those stocks through drawdowns.
It's easy to have conviction during bull markets when your stocks rise 10-20% in under a year, but drawdowns of greater than 50% make you internally question your hypothesis and believe that you were wrong.
That's why only a chosen few will ever have a 100-bagger in their portfolios in a lifetime.
What does a 100-bagger compound like?
A CAGR of 25-26%. Which is huge. It can convert portfolios to 10X in 10 years and 100X in 20 years.
Compounding is a powerful concept and it causes exponential growth.
Here are a few top 100 Baggers and the years it took for each one to be a 100 bagger, in the S&P 500 as noted in the book, 100 baggers, by Chris Mayer:
Cheers!
End-Week Wisdom:
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