Startup Terms Glossary
What is a Ten Bagger?
When an investor profits ten times his original investment in a security it is called a ten bagger. This term was originally coined by Peter Lynch in his book One Up on Wall Street and is derived from a term in baseball where two, three, or four baggers are used to describe extra-base hits. Similarly, investments that return double are two baggers, triple returns are three baggers, and so on.
Ten Bagger Examples
Examples of a ten bagger:
- Example 1. An investor takes out stock in a company that has a maturity date of five years. The original stock is purchased at $1 a share. After 5 years, the shares are worth $10 a share. Since the stock is ten times more valuable than it was when it was acquired, it could be coined a ten bagger.
Here’s another web page about a ten bagger.
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