16 Tricky Ways To Identify And Pick Multibagger Stocks

Tricky Ways To Identify And Pick Multi-bagger Stocks. Smart investor getting excited for identifying & picking multibagger stocks on time.

(4) Unique Or Disruptive Business Model

It is one of the most unbeatable ways to identify and pick multibagger shares. A business model is a critical element for the success for any organization.

It is something necessary to unlock long-term value for an organization while delivering valuable products & services. Simultaneously, it should also create & capture value for its investors.

Ideally, ‘would-be multibaggers’ are those companies which possess unique or disruptive business model. They are found to belong either to a niche category or be a new entrant.

They have great market potential with promising earning visibility going forward. These ‘would-be multibagger’ companies hold unique position in the market due to the presence of sustainable competitive advantages.

They offer unique products or services that are difficult to be replicated by others. Therefore, there exists an entry barrier for the competitors.

This competitive advantage can be in form of a big & powerful brand value, low production cost, patents & copyrights, first-movers, favorable government policies, etc.

Additionally, it provides the company enough pricing power to protect its profit margins even in adverse market conditions. Therefore, a favorable demand-supply dynamics exists for the company due to continuous demand from customers.

Generally, business of such great companies will not be a part of any large or broad industry. They prefer to stay focused solely on their own products & services of expertise rather than going for diversification. Sometimes, they might be struggling for their survival in new emerging sectors.

However, due to the presence of monopoly or duopoly command in a particular industry, these would-be multibaggers start delivering exceptional performance in favorable business scenario. The stocks of such great companies should never be missed out to gain manifold returns.

[Read Also: 20 Tricky Ways To Identify & Avoid Value Traps in Stocks]

(5) Business Opportunity, Scalability & Sustainability

It is one of the single biggest ways to identify and pick multibagger shares. No business organization can succeed in the long-run in absence of business opportunity.

It is something necessary to generate enough profits for investors. A company operating in a sector or segment with huge business opportunity can provide super returns in the long run.

It is particularly true for investors who have identified the hidden value of such a company in its formative stage. It is the reason why size & longevity of any business opportunity gains significance.

Simultaneously, it is equally important to look towards scalability & sustainability of business operations. A stock that offers a business that is scalable within a short period of time without affecting its profit margins can be a good bet.

You should go for a company whose business activities can sustain & grow exponentially for years to come. It should not be working on an idea, or product, or service that may go out of fashion within a year or two.

In such a scenario, you should not bother much about market capitalization category of underlying company. This potential multibagger stock can be from any category such as large cap, mid cap, small cap, or even micro-cap.

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7 Comments on 16 Tricky Ways To Identify And Pick Multibagger Stocks

  1. Your pop up for sign up is too irritating. Though i wanted to read many articles but left in between. Can you stop showing pop on everypage

  2. It would be great if you guide us how to get all those 16 point information.

  3. Out of 16 tricks, i am able to see only 1 trick, how to read remainin 15 tricks

    • Editing Staff // August 1, 2016 at 7:11 PM // Reply

      Thanks for stopping at our site. You will find pagination in most of the articles. The number of pages in a given article in mentioned below in red colored numbered boxes. In this article, you will find 1, 2,3…….up to 9 pages. If you want to go to next page i.e. page 2 then click on page 2. Once you read page 2 click on page 3 & so on. Its very simple.

    • Page number 2, 3,4, etc are at the bottom of the post. You have to physically click on them. Good luck learning.

  4. Shiva Nandini // June 5, 2016 at 11:10 PM // Reply

    Very Valuable Post on Multibagger picks

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