What Are Multibaggers?

By Jeremy Bowman – Updated Jan 1, 2025 at 12:35 PM

Key Points

Multibaggers are stocks that return multiple times their initial value, with potential 100%+ gains.
Focus on tech sector for multibaggers due to high growth potential and disruptive capabilities.
Amazon exemplifies a multibagger, with a 142,000% gain since IPO due to prolonged revenue growth.

Every investor wants to make money in the stock market, and one of the best ways to do it is investing in growth stocks that can generate huge returns.

Some investors refer to these stocks as multibaggers, a term that was coined by Peter Lynch, the famed fund manager who generated monster returns while leading Fidelity's Magellan Fund for 14 years. Lynch is also known for sharing his knowledge with retail investors in several books, including One Up on Wall Street. Here, we'll describe multibaggers -- what they are, how to find them, where they come from, and a prime example of one.

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon and Netflix. The Motley Fool has positions in and recommends Amazon, Netflix, and Tesla. The Motley Fool has a disclosure policy.