10-baggers - What Drives Returns?
It can vary between multiple expansion, profit margin expansion, and sales growth.
Below are selected stocks earning more than 10X in the last 10 yrs.
Factors >50% driving returns are highlighted.
...we barely have any of these 10-bagger over 10yrs profit-making long term performers on ASX
...because we barely have any industry-leading moats on ASX
...but we have many 10-bagger speculative stocks that run on blue-sky hype and hope but typically fizzle out after a year or two. And most of them are in the resources sector which, market participants tend to forget, are subject to or vulnerable to cyclicality.
...sustainable 10-baggers are very different to short term 10-baggers, in the former, you can Buy and Hold for longer, in the latter, you Buy and Hold until it starts to falter.
