Making the Multibagger- A Pipe Dream for Investors?
It's been 3 years since the subprime debacle started. Remember that 3 years ago this month, I was in India.
The CTO of the company I used to work in also went for the trip and he said that the subprime debacle will be limited to USA and that it would not affect Singapore.
He has a doctorate and isn't the last intelligent person who was caught out in the financial crisis of 2007-2008.
I don't remember disagreeing with him, so I must have agreed with his sentiments.
And here we are 3 years later. I looked at my stocks’ portfolio and don't see any multibaggers.
Sure the stocks have increased and made back the 60% paper losses suffered during the crisis and then some.
But none are showing the type of multibaggers that made Peter Lynch and Warren Buffettt famous.
Not that I am in their league, but I guess it says something that after about 4 years of holding onto my stocks for dear life and adding more, I just made about 58% paper profit. Only.
Not the astounding, astronomical 200%, 400% etc. Just a paltry 58%. Not counting dividends.
However, when I put down some projections in an Excel table:
| No. of Years | Invested Amount | Investment Return |
| 1 | 100 | 0.1 |
| 2 | 110 | 0.1 |
| 3 | 121 | 0.1 |
| 4 | 133.1 | 0.1 |
| 5 | 146.41 | 0.1 |
| 6 | 161.05 | 0.1 |
| 7 | 177.16 | 0.1 |
| 8 | 194.87 | 0.1 |
| 9 | 214.36 | 0.1 |
It doesn’t look half as bad then. It means that I am a little ahead of time and it’s like it is year 6 of the 10% journey. Around the 8 and 9 year mark, I should have a doubling of the investment. That is if my investment returns hits anywhere near 10% per annum.
That is a lot of ifs and buts, plus counting my chickens before they’re hatched. More importantly, having targets helps me focus on the long term.
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