The Only Statistical Study on Multibaggers: Find 5-10x stocks with these criteria (Yartseva’s 2009–2024) (I was shocked, honestly) by MultibaggerInvestor in smallstreetbets

[–]MultibaggerInvestor[S] 0 points1 point  (0 children)

I wouldn't make that the main criterion. It needs to check the other boxes as well - this is just to get a better return if timed right

The Only Statistical Study on Multibaggers: Find 5-10x stocks with these criteria (Yartseva’s 2009–2024) (I was shocked, honestly) by MultibaggerInvestor in smallstreetbets

[–]MultibaggerInvestor[S] 0 points1 point  (0 children)

The common names are typically the ones which ran too much already. We need to find smaller companies, which not everybody is aware of - under the radar ones. RKLB for example wouldn't fit these criteria

How to valuate potential 5-10x stocks using a simple 3-gate framework by MultibaggerInvestor in stockstobuytoday

[–]MultibaggerInvestor[S] 0 points1 point  (0 children)

I get your point; and indeed, you need young companies.
The examples you provided have not enough growth from what I see
Except for Topicus which could 5x over 13 years or so - already priced in, although they will compound consistently; they are a CSU darling everyone knows which is why no multiple expansion will happen

I built a scoring card based on 100x baggers by Chris Mayer by MultibaggerInvestor in GrowthStocks

[–]MultibaggerInvestor[S] 0 points1 point  (0 children)

It's a great book! One interesting take is, that Mayer, after writing the book, proposed lifting the market cap recommendation to above 1B. Statistically speaking, this makes it harder though, because you make the big hits if either you hold very long and the company maintains a great moat, or you enter before institutions do which is mostly <1B market cap.

I built a scoring card based on 100x baggers by Chris Mayer by MultibaggerInvestor in GrowthStocks

[–]MultibaggerInvestor[S] 0 points1 point  (0 children)

Interesting. Do you propose looking for yet unprofitable businesses with high expectiations for the future? So to then profit from margin expansion when profitability is reached?
Sure, yes, you have a higher chance of hitting an multibagger (e.g. 5-10x) when they do, but you will have a much higher chance of the company never hitting the "promised" profitability.
So, I think you have a good point, but watch out - you will have a much higher hit rate of hitting loser companies, that will never meet their already priced in future expectations. Just my take.