Identifying Multibagger Stock

 As discussed in article from Robin-hood trader to Investor after Journey of 15 years. In 15 years I heard lot about Rakesh Jhunjhunwala and other various investors and I even tried to find out multibagger stocks so that I can capitalize on the same and will makes crores from single investment. In whole 15 years I have identified and even invested in few of stocks which become multibagger over the period of time but I never ever capitalized on the same and ultimately never take the gains from that stocks.

1^st Multibagger Stock Identification:-

In year 2012 I have identified one stock naming as Tanla Solutions, I haven’t done a great research about this stock may be I identified by a Tukka you can say. But this stock was trading at Rs.3 at that time and now days it is trading at Rs.1500 per share levels after touching highs of above Rs.2000 per share. Now whenever I see at this stock I always keep on thinking that had I kept that stock in my account in will be millionaire by now. But I sold that stock on Rs.6 per share levels.

2^nd Multibagger Stock:-

Now in year 2018 when I become investor I invested in Saragama Share and studied a lot about that stock and even studied about their product offerings and I was very such sure that this stock will reach Rs.1000 levels very soon. I bought that share around Rs.350 levels and kept until 2020 where COVID-19 1^st wave has started which leading to downfall of shares and at that time I lost my patience and sold my shares at that time. Now this share is trading at Rs.4600 levels after touching highs of Rs.5500 per share levels.

3^rd Multibagger stock:-

Apart from this I even identified Tata Consumer share at Rs.150 levels and even held this stock for 6 months and then sold the same at around Rs.190 levels but now this share is trading at Rs.760 levels after touching highs of Rs.889 levels.

Other few stocks which I know has become multibagger over the period of 15 years:-

Apart from above mentioned stocks there were so many other companies which has become multibagger over the period of 15 years. In last 15 years there are following few shares much has given multi times returns:-

1.       Titan

2.       TCS

3.       Infosys

4.       Bajaj finance

5.       Asian Paints

6.       Bajaj Motors

7.       Bajaj  finserv

8.       IGL

9.       Reliance

10.   Adani Enterprises

There are many more shares which have long term prospect and even for future generations and this doesn’t means that these stocks has already multibagger and will not give return in future. These stocks are market leaders and always keep on doing innovations in their respective fields and will generate healthy returns but I here I am not recommending that to buy these shares. Here I am simply saying that these share has become multibagger over the period of time.

This clearly shows that you can identify the multibagger after some research but we don’t have enough patience levels to hold the stocks for get maximum out of the stocks. Even some experts says that even if you are bad investor and still go for buying the stock market purchase then identify 10 stocks after research and target them to hold for at least 10 years and invest equivalent amount in each of these 10 stocks. Since you are bad investor and after 10 years your 9 out of 10 stocks get to zero and 1 stock which you hold for 10 years will cover your loss of 9 stocks and given returns above your investments.

The key here is that you held that stock for 10 years and even dividend paid by that stock will be more than FD returns. In past experts has hired a donkey and give him all stocks name written on different dices of DOW Jones and asked the donkey to pick 20 shares and when these shares picked by donkey returns has been seen for next 10 years and surprisingly these shares cumulative returns surpasses the Dow Jones Index returns.

So lesson we learnt from above are as below:-

1.       Don’t buy stocks in hurry do some research about shares where you want to invest. Consider that you are going to be part in the business not just buying shares.

2.       Keep patience and hold the shares for lease 10 years. If you time horizon is less than that than don’t invest in share market.

3.       Don’t keep on watching the shares every time as this entice you to do some trades on daily basis. Just plan to visit stocks for price checking once in 3 months.

4.       Always buy a good business with long term plans and healthy balance sheet.

5.       Don’t buy more than 20 stocks as you can’t be expert of 20 businesses at one go.

 

Market will always going to reward you if stick to your basics and have patience levels.

Never listen to Market experts of News Channels:-

Now days there are so many business channels and they have hired experts which gives you daily trading calls based on certain patterns. Never go after them as you will not be going to get any gains from their recommendations. Instead you will keep on looking for covering your losses and covering up the brokerage charges for whole day.

 

Instead of watching these channels always read some books of great investors which will tell you some basics about investments. You will meet various persons during your journey being an investor which will even try to intimidate you and will told you that they have made healthy returns from F&O, Intraday trading and various other options. Just listen their opinions only and never implement them. The person telling you to do this may have gained for 1-2 days or even for few weeks but at the end he/ she will lose all their hard earned money. The experience I have I already told you in my previous article.