Continuation of part 1……….As you can very well understand, pick just one of these home runs and you will be able to retire before Donald Trump does, pick 10 in a row and you will be able to fund NASA for at least a few years. Hence the significant interest in the subject matter.
Stocks like Franklin Resources. If you would have invested $10,000 in Franklin Resources (BEN) in February of 1989, today you would have over $580,000. A “58 Bagger” or a 5,700% return on your investment. If financial services companies do not spark your fancy perhaps the equipment maker Danaher Corp (DHR) will. If you would have invested just $10,000 in April of 1990, today you would have over $800,000. An “80 Bagger”. I bet you can smell the sweet scent of easy money right about now, yet very few investors are able to first identify and then to hold on to such amazing investment opportunities.
We are here to change that. During the course of this book we will look at 10 such individual stocks, the companies that have appreciated at least 10X over the last 5-25 years. We will go back in time to the point before the original stock run up ensued. We will analyze the underlying companies in great detail to ascertain if the companies in question had certain characteristics that can be attributed to potential Tenbaggers. In particular, we will look at such companies from three different angels.
- Fundamental Analysis: I believe it is important to understand any Tenbagger’s fundamental starting point. Prior to run up initiation. We will look at various valuation metrics, analyze financial statements, look at management, competition, products and product pipelines. Anything and everything in order to understand where the company was and why such a massive growth in its stock price was about to occur.
- Technical Analysis: We will look at the underlying charts in order to determine if the Tenbagger in question gave us any technical hints of what was about to come. The fact that the stock price was about to stage a massive multiyear rally. Plus, we will look at various entry points where we could have taken a position on purely technical assumptions and if we would have been able to ride the stock price all the way up on such technical attributes alone.
- Timing/Mathematical Analysis: Most importantly, I will introduce my proprietary timing/mathematical analysis into the mix to see if such massive stock rallies could have been predicted and anticipated. Plus, we will look at the durations of these rallies in order to identify proper exit points and what that means for the future of the underlying companies.
To Be Continued…….
