Multibagger stock

{{Short description|High-return equity stock}}

A multibagger stock is an equity stock which gives a return of more than 100%. The term was coined by Peter Lynch in his 1988 book One Up on Wall Street and comes from baseball where "bags" or "bases" that a runner reaches are the measure of the success of a play.{{cite book|title=One Up On Wall Street|last=Lynch|first=Peter|publisher=Simon & Schuster Paperbacks|year=1988|isbn=978-0-671-66103-8|location=New York, NY|page=[https://archive.org/details/oneuponwallstree00lync_0/page/32 32]|url-access=registration|url=https://archive.org/details/oneuponwallstree00lync_0/page/32}} For example, a ten bagger is a stock which gives returns equal to 10 times the investment, while a twenty bagger stock gives a return of 20 times.{{Cite web|title = Tenbagger Definition {{!}} Investopedia|url = http://www.investopedia.com/terms/t/tenbagger.asp|website = Investopedia|accessdate = 2015-10-16|language = en-US}}

This term is especially common when discussing high-growth industries and emerging markets such as the BRICS.{{Cite web|title = Top 10 midcap stocks that are multibaggers in the making|url = http://articles.economictimes.indiatimes.com/2015-08-10/news/65415552_1_indian-economy-top-10-midcap-stocks-digital-india|archive-url = https://web.archive.org/web/20150822224622/http://articles.economictimes.indiatimes.com/2015-08-10/news/65415552_1_indian-economy-top-10-midcap-stocks-digital-india|url-status = dead|archive-date = August 22, 2015|website = timesofindia-economictimes|accessdate = 2015-10-10}} As with most investment metrics, past performance is no guarantee of future returns, and multibag returns may be indicative of either sustained growth or an investment bubble.