In Search of Multi Baggers

Bursa Malaysia was up and many stocks, especially the penny stocks have become multi baggers and some of us wonder, why is it not the stock I bought. Must I take more risk for more return and will there be any more multi baggers in the future? I do not agree with this as my money is hard earned money and I do not want to gamble with it.


I wish to share my little experience and hopefully we can all find more and more multi baggers without having to take more risk.


I have been investing since my Uni days and I did not track my investment records till few years ago, reason being - I don't think I have made much as my net worth did not really grow till 2012. Mr Market had taught me some good lessons during the initial years and I have grown to be a more matured investor now.


There are various views on stock investment - from buy & hold, diversified vs focus, fundamental analysis, technical analysis or dynamic investing as claimed by some. I have slowly becoming a strong believer in value investing approach with strong emphasis on fundamental analysis ( financials) and also will consider the qualitative aspects of the business, management, etc.


There are so many successful investors who have made it real big through stock investing and accumulated substantial wealth. Hence, I always look upon them and find every opportunity to learn from them. My purpose of writing this topic is to show that an ordinary investor like me can come across what is known as the Multi bagger ( after I have read Peter Lynch's book in 2012, I started to search for Multi Baggers as I wonder if an ordinary investor like me can find it too??). For my own definition, I regard any stock that give me at least 200% return in 5 years would qualify. 


Now 5 years have gone, I am doing a review ( refer to table below - last 5 years stock investment/trading records) to answer a few of my own questions:-


Is it difficult to find Multi baggers?


No, there were so many of them and based on the stocks I have bought the past 5 years, I found 4 so far -  Inari, MKH -WB, SLP, Tguan but only capitalised on 2 of them.


Is it always right to buy and hold till it become Multi Bagger?


It is really judgment call as 5 years may not be long enough. So far, there were some right call (MKH -WB, Tguan) and some wrong call (Inari, SLP). But for now, I am relying on indicative Intrinsic Value to guide me when to sell.


Do I have to take high risk for high return?


No as I am "kiasi" now and I personally do not think one has to take more risk for higher return. Good company with strong fundamental can be multi baggers too (eg MKH & Tguan, the fundamental were already strong when I bought them).


I must admit I had taken unnecessary risk when I invested in HHGroup  as I did not do financial analysis, merely look at the business potential. The losses incurred on Glomac, A&M, Mmode & Opensys were judgment call as the fundamental of these companies were all right and with growth potential and mostly supported by  asset base, I cut loss when the financial performance does not meet my expectation.


I tried to forget about my worst pain (I left it out in my list below)..MYEG, I like the scalability of its business and bought a sizeable amount in end 2011 but sold almost all in 2012 as election was coming soon. I was so convinced then the opposition would win the election and MYEG being connected to the BN government might be a big loser...the rest is history now ( a 10 baggers).


Believe it or not, an ordinary investor like me can find Multi Baggers too. My journey continues .... I am still waiting for my next Multi Bagger !!