It was Tuesday, January 11th, 1898. I was running up and down the trading floor, like a crazed animal. Bumping into people, jumping into trading pits, grabbing the latest stock quotes and rushing back to a giant blackboard right next to the main entree way. I would then jump on and scale what must have been a 60 foot ladder in order to update the bid/ask/price stats for at least three stocks at a time. Jump down, rinse and repeat. I was exhausted. I distinctly remember that my body was beaten up from bumping into thousands of people as I was running all over the floor collecting the latest stock prices. No wonder I woke up tired.
My boss, fat Joe, was yelling at me throughout the entire ordeal. He would repeatedly shout “Faster you lazy SOB, I don’t have all day for this” as I jumped into the next trading pit. Yet, after a few round trips I have noticed something strange. Every time I would update the stock price it would go up exactly 10 times. The crowd on the trading floor below was starting to go wild. I was becoming the most popular runner. Just within a few trading hours General Electric went from $8.50 to $85 a share, Colgate-Palmolive Co. went from $17 to $170 and Union Pacific Corporation went from $11.35 to $113.50. Someone was making a lot of money.
As the “melt-up” panic spread throughout the trading floor most of the stock enthusiast below turned into blood thirsty animals. Pushing, screaming, trampling each other, yelling BUY, BUY, BUY…..whatever it took to get a piece of the action. A few minutes later the mob proceeded to push my ladder over, forcing me to fall into a swarm of money hungry sharks. Waking up in a cold sweat of excitement, I had a great idea and I knew what I had to do next.
I had to find an answer if it was possible to identify “Tenbaggers” through a combination of fundamental, technical and timing analysis. To determine what, if any, traits they had in common before starting their historic runs. Most importantly, to identify metrics that would allows us to identify the same opportunities in today’s market. Giving us the ability to take position and profit from high probability Tenbaggers of the next decade.
That is what this book is all about.
Tenbagger, a stock that goes up at least 10X its original purchase price, is the term first coined by a legendary investor Peter Lynch. Lynch was considered to be one of the best money managers in the nations in the 1970-1990’s through his management of Fidelity Magellan Fund. Mr. Lynch had a particular knock for identifying companies in the early stages of their stock run ups. Companies like Body Shop, Lawrence Savings Bank, Pier 1, Supercuts, etc…. Buying them in early stages of growth (when no one else was paying attention) and holding them for many years as they continued to appreciate 5X, 10X, 100X and even more.
To be continued……..
