A wide moat is essential for every Quality Investment. Almost all multibaggers (91%) are characterized by a wide economic moat. Barriers to entry are the most preferred moat source for multibaggers (81%).
ЁЯз╡ It's every investor's dream to make a 10-bagger (a stock that goes up tenfold), or even a 100-bagger (a stock that goes up 100x).
In this thread we will learn you how to identify multibaggers together with 104 (!) concrete examples.
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A wide moat is essential for every Quality Investment. Almost all multibaggers (91%) are characterized by a wide economic moat. Barriers to entry are the most preferred moat source for multibaggers (81%).
Great companies are very cash-generative and have a healthy balance sheet. Seek for companies with a low net debt / EBITDA and high interest coverage. When the company has a net cash position, this is a great surplus.
While many acquisitions fail to create value, the best performing stocks use acquisitions to bolster their returns.
If you want phenomenal returns, find great acquirers. Constellation Software, and Lifco are beautiful examples.
When you want to buy something great, you have to pay for it.
While itтАЩs always better to buy a great business at a low multiple, many of the top performing stocks started compounding with multiples which were already high.
In general, small caps perform better than large cap stocks because they have more upside potential.
When you can find an owner-operator small cap stock which is a market leader in a niche with high margins, you have found a (potential) goldmine.
As a quality investor, you should love margin expansion.
When the profit margin of a company doubles, the EPS of the company doubles too.
In the long term, earnings growth is the leading factor for stock price performance.
The only thing you need during a successful investment career, is a few big winners.
Between June 2015 and June 2020 Zynex Medical, the best performing stocks over the studied period, returned almost 9200% (!) to shareholders.
When you can buy companies which can reinvest a lot of their FCF in organic growth opportunities at high margins, the companyтАЩs earnings will explode over time.
Do you want to learn more? Download all 104 (!) multibagger stocks which where studied here:
https://t.co/LQOtuyqLVp
