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!
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. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center in general or this page in particular. Your input will help us help the world invest, better! Email us at firstname.lastname@example.org. Thanks -- and Fool on!