1, 10, 100, 1000 Baggers
These are silly naming terms for investment gains - somewhat tongue in cheek Wall Street Bro lingo.
But life should be fun - shouldn’t it?
I was thinking this morning over my 2 cups of coffee, 1 cup of tea and Mediterranean sardines on toast -
Have I ever gotten a 1000 Bagger?
So to be clear - a 1000 Bagger is 3 orders of magnitude growth.
The answer - almost. I’ll let you know if it ever happens. (I don’t include anything that I’ve sold and let ride in my bagger statement)
100 Baggers and 10 baggers - absolutely!
How I think about investing really starts with what I think the next thing to double will be (or 1 bagger).
Stocks yielding 5% or 8% growth annually seem quite astonishing when you compare to even a 1 bagger (100% growth).
My Approach
I personally operate from a gut and intuition point of view as well as being open minded, but layering in awareness of reality. I later will then aim to build conviction by doing deeper and deeper analysis.
I invest chunks of my money in percentages in various bucket sizes. 1.25%, 2.5%, 5%, 10%. I operate from a percentage of portfolio point of view rather than a dollar value. I decide on the percentage based off a bunch of variables then put it it into action. Dealing with percentages means that you distance yourself from thinking too much about what the dollar amount is.
If it tanks immediately I sell and re-evaluate my idea.
At some point it makes no sense to keep contributing to investments if you are at 5 million or 50 million - does it make sense to keep adding 50k? Its a drop in the ocean. Live life more!
Hopefully the article gave you a little insight into my world and may have been fun.
I wish you many baggers!