A daybagger is a stock that rises at least as much per share in a single day as your original cost basis. At The Motley Fool, the verb form of this term is spiffy-pop.
For example, a stock rises from $98 to $100 per share, and you originally paid a cost-adjusted $1.50 for it. That $2 gain is greater than your cost basis -- and that, my friends, is a "daybagger." And it's a sweet thing.
In 2007, David Gardner asked the Rule Breakers community to help him invent a word to capture this phenomenon. At least five Fools came up with daybagger as the perfect noun. As David explained, it elegantly dovetails with our use of 'bagger' at Fool.com -- where we call, for instance, a stock that triples a 'three-bagger.'"
A mere two days after announcing the winning words, Rule Breakers experienced a first, as one of its recommended stocks spiffy-popped: Software maker aQuantive received a buyout offer from Microsoft and gained more than $38 that day. From its recommendation price of $25, that made aQuantive our first daybagger!
The $15,978 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. For example: one easy, 17-minute trick could pay you as much as $15,978 more... each year! Once you learn how to take advantage of all these loopholes, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how you can take advantage of these strategies.
This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors based in the Foolsaurus. Pop on over there to learn more about our Wiki and how you can be involved in helping the world invest, better! If you see any issues with this page, please email us at firstname.lastname@example.org. Thanks -- and Fool on!
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.