Thanks for this, Joachim. After the first 5x, might further multiples of 5 be explained by fundamental analysis? Could there be a correlation with revenue growth (or asset growth) for example? Peter
Instead of thinking in terms of "singular" multi-bagger situations, one may instead, want to think in terms of a diversified multi-bagger "portfolio". A simple portfolio construction based on three equity asset classes has produced steady "multi-bagger" returns ( over seventeen 20 year rolling periods since 1986), averaging an equivalent 11X multiple growth ( chart 1 Apoendix https://tinyurl.com/c39hr65k ).
Thanks for this, Joachim. After the first 5x, might further multiples of 5 be explained by fundamental analysis? Could there be a correlation with revenue growth (or asset growth) for example? Peter
All good questions but I answers so far from Bessembinder.
Instead of thinking in terms of "singular" multi-bagger situations, one may instead, want to think in terms of a diversified multi-bagger "portfolio". A simple portfolio construction based on three equity asset classes has produced steady "multi-bagger" returns ( over seventeen 20 year rolling periods since 1986), averaging an equivalent 11X multiple growth ( chart 1 Apoendix https://tinyurl.com/c39hr65k ).