The characteristics of a multi-bagger stock

Multi-bagger stocks are not created overnight. They belong to companies that record consistent, long-term growth. And they have some defining quantitative and qualitative characteristics. Among the quantitative characteristics, we have high earnings and high profit margins. Multi-bagger stocks also belong to companies with little to no debt. And they enjoy high free cash flows. Qualitatively, the company behind a multi-bagger stock has enduring competitive advantage. Secondly, the company’s management is honest and capable. It also enjoys significant promoter holding, showing that the company’s promoters believe in its growth. Investing in multi-bagger stocks is a strategy that many investors prefer. Learn more about investing in the stock market with Smart Money!