Multibagger investors are unique personalities of their own kind. These qualities of investors who buy and hold multibaggers are unbeatable.
Everyone wants to gain maximum profits from their stock investments. This concept is true even for those who have identified and picked the right multibagger stocks.
But, every investor is not capable enough to stay invested in multibaggers until the last phase of its price appreciation. Most of the investors get exited too early while others get exited in the mid of the rally.
However, only a few investors stay invested from initial phase of multibagger to the end of the phase. They are perhaps the one who gets true benefits of investing in a multibagger stock.
What makes these types of investors totally different from other investors? If you want to position yourself among those lucky investors then you need to position yourself as a long term investor. Additionally, you need to undergo a lot of preparation to set your mind to hold a potential multibagger stock.
Simultaneously, you need to ignore all temptations to book profit & stay focused on all the developments of company. Here are 10 characteristics of multibagger investors who buy and sit tight to gain multiple returns:
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(1) Foresightedness In Stock Selection Process
It is one of the most significant qualities of investors who buy and hold multibaggers. Foresightedness is the ability of a person to anticipate what might happen in the future. It is something that gains significance particularly when selecting potential multibagger stocks.
You can’t invest in any cheap stock just because of its low valuations. Sometimes, stocks keep trading at lower valuations constantly for several years as they deserve to remain cheap.
Therefore, you need to possess foresightedness to find potential multibaggers at throw away prices. The management of such companies must be capable enough to meet or even exceed investor’s expectations with time.
In order to find such promising companies, you need to perform a thorough research & analysis of a company’s business activity. Investors should analyze the hidden potential of various products & services of the company. They should be able to answer the various questions regarding future prospects of a company.
Some of the business activities that can be analyzed through foresightedness include what will deliver growth in future, how much will be future performance, ability to modify & innovate as per consumer’s demand, ability to face new competition in the market & many more.
If you are able to get the right answers then perhaps they are very much near to finding the next multibaggger.
- Multibagger Investor: Gettyimages