Well, I would start with the Headline – “India Searching Multibagger… Confirms the Search Engine KING- GOOGLE”.
The country seems to be gung-ho on this term multibagger that they are not even using logic and searching this on google as if it was some recipe or some restaurant name.
How lame the quest to copy or have a free meal become?
Do you want proof?
Indian Leads in Searching “multibagger” on internet
Look out of the entire world, the maximum search comes from India.
You will say it’s a bull run so what?
But markets have been not so bad in US or Brazil too.
Now Top Statewise love for Multibagger
Yes, it was expected.
Maharashtra & Gujrat leads in India. Karnataka also worth noticing as a huge number of Tech Guys live here and they contribute (read – they use office internet as mobile data sucks).
See Jharkhand and Goa… I am shocked.
Look how people have been searching by year, month or even for long term.
If you still don’t know what I am talking about- let me brief you
What is Multibagger
Stocks, share or investment that can give returns several times their cost of purchase is called multibagger. These are stocks which can multiply as they are either undervalued or new to the business.
So a stock that double is called two-bagger, Multibagger means increasing its value multiple times.
Some examples:
Eicher Motors: The company that manufactures Bullet Bikes & Eicher Tractors.
Page Industries: The inner/casual wear brand you know by the name of “Jockey”.
And many more.
How multibagger are made or originate
Multibaggers are made of 2 elements. One, consistent Growth over Time. So growth means the company has grown at a good rate (more than peers) for many years. Second, you have to give the idea – time to ripe.
If you look at the example above, Page industry has grown by 21% over the last 10 years hence it strikes the wall. How many of the investors searching multi-baggers are committing themselves for 10 years or more?
And marathon earns respects not recognition.
You know who runs the 100 meters or 200 meters the fastest but do you know who is the fastest marathon runner?
But you respect him because you know he has practiced the hard way. Will you commit to such hard work & patience?
What’s wrong in searching Multibagger
The wrong in searching multibagger is:
- Expecting Free meal: You know they never exist. But still, you think someone would leave you biryani on some random website page.
- Ignoring Basics: Basics of investing are – Start Early, invest Regularly, Diversify, Set Goals, Review. But multibagger means catching nitrogen from thin air. You forget the basic.
- Most important: Search for multibagger means 2 thongs. You find it or you don’t invest in search of that magical thing. So chances are you either hold on a bad idea or sit on fences without doing anything except searching multibagger again every year.
- You leave what’s on the table for what you have only heard. You become speculative as you believe in rag to riches (Cinderella) stories. So you procrastinate your financial planning.
- You are an easy fodder for greedy marketers who are selling penny stock tips or Ponzi schemes.
What to do?
Focus on the easy way.
Do you know a compounding of 10% for 25 years is not 250% but a whopping 985%?
So instead of winning small wars each day, you are waiting to win The Armageddon. And I am not sure if everybody gets a chance to fight in Armageddon!
Have you started making your portfolio a Multibagger? Did you plan your goals? Got a financial plan for you and family?
If not Sorry – Search “Help in Retirement” instead on Google.
Any Hint?
Yes… remember the old saying when your liftman, cobbler or miser aunty living next door start taking interest in equities & share, it’s a bad sign.
Please comment below and tell me what you think? Do you believe in disciplined investing or miracles? Let us have a discussion when you want.
