Real Cases
Tenbagger is a stock that grows by 1000%, that is, ten times. According to Lynch and Rothschild, identifying and acquiring such shares in a particular area at their lowest price point is not a super task for any representative of this area (2000). First of all, this fact is connected with the fact that every representative of any company is involuntarily aware of industry trends. In this regard, the definition of a potentially successful product, the distinguishing feature of either the need for constant purchase or a unique proposal ready to turn the market, is much more tangible and professionally understood by investors (Lynch & Rothchild, 2000). Lynch and Rothschild list ulcers as Zantac from Glaxo and Tagamet from Smith-Kline Beckman, both of which have gained about ten times over the years (Lynch & Rothchild, 2000). However, doctors are more likely to invest in the aerospace industry or oil, although deep knowledge of medicine opens up much more opportunities for them, at least because of the relevant information available in this area. These investors are creating profit barriers that they do not know how to deal with before the stock price crashes.
Advice to Catch It
Professional knowledge and total immersion in a specific area give a significant advantage over financial analysts. For example, knowledge of the hidden assets of companies that are not on the balance sheet makes it possible to buy low-cost stocks with high upside (Lynch & Rothchild, 2000). Knowing the history of a company, especially in the context of local and global trends, can also be a clue to a significant increase in stock prices (Lynch & Rothchild, 2000). In almost all of the above cases, it is enough to be a worker within a particular industry and be interested in it. Uncertainty about success leads investors to invest in non-core areas of human activity, in which they eventually learn about the current trends much later than analysts from Wall Street, who themselves are constantly late for updates (Lynch & Rothchild, 2000). Investing in a future tenbagger is a reality; it is just needed to study better the industry in which a person is already a professional.
Reference
Lynch, P., & Rothchild, J. (2000). One up on Wall Street: how to use what you already know to make money in the market. Simon and Schuster.