🧵 It's every investor's dream to make a 10-bagger (a stock that goes up tenfold), or even a 100-bagger (a stock that goes up 100x).

In this thread we will learn you how to identify multibaggers together with 104 (!) concrete examples.

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Lesson 1: Look for business with a wide moat.

A wide moat is essential for every Quality Investment. Almost all multibaggers (91%) are characterized by a wide economic moat. Barriers to entry are the most preferred moat source for multibaggers (81%).

Lesson 2: Invest in financially healthy companies.

Great companies are very cash-generative and have a healthy balance sheet. Seek for companies with a low net debt / EBITDA and high interest coverage. When the company has a net cash position, this is a great surplus.

Lesson 3: Acquisitions can create a lot of value.

While many acquisitions fail to create value, the best performing stocks use acquisitions to bolster their returns.

If you want phenomenal returns, find great acquirers. Constellation Software, and Lifco are beautiful examples.

Lesson 4: Don’t rely on multiples.

When you want to buy something great, you have to pay for it.

While it’s always better to buy a great business at a low multiple, many of the top performing stocks started compounding with multiples which were already high.