Why we hunt multibaggers

A multibagger is a stock that returns many times your money: a 10-bagger turns 10,000 into 100,000, a 100-bagger turns it into a million. They sound like fairy tales. They are not. Every decade produces a handful, and they are almost always the same kind of animal: a business that earns high returns on the capital it puts to work, and has a long runway to keep reinvesting at those returns. High returns plus a long runway is the engine of compounding, and compounding is the most powerful force in investing.

The catch is time and temperament. These returns are not made in a quarter. They are made by buying a great small business and holding it through the noise while it grows up, ups and downs and all. The chart will lurch. The crowd will doubt it. Patience, the willingness to sit still while a thesis plays out, is itself an edge, because most people cannot do it.

So the hunt has a simple shape. Find businesses with the engine, while they are still small enough to multiply. Understand them well enough to hold on. That is what this whole site is built to help you do.