My successful multi baggers
I’ve traded a wide range of
stocks over the years, which naturally led to both big winners and big losers.
Since I turn over my portfolio roughly once a year, I usually sell most losers
within a year (for tax-loss harvesting) and hold onto winners longer to benefit
from long-term capital gains treatment in my taxable accounts.
Given this relatively short
holding period, it’s harder to catch multi-baggers—but I still manage to. Why?
I believe there are always better opportunities out there as the market
evolves. While this belief is debatable, the strategy has worked well for me so
far. I try to thoroughly review each stock before selling, though it’s easier
said than done. I need to read my book periodically.
This method may not suit
everyone, so don’t follow it blindly. But it does help make my investment books
more interesting—I have plenty of examples to share!
As of July 7, 2025, here are some
of my multi-bagger success stories (note: some dates may be off slightly,
especially those based on brokerage statements).
SMCI
Fidelity once published a list
titled “Best Stock in Each Sector” (11 sectors total). I analyzed all of them
and chose SMCI. I also featured it among eight picks in my book “Best
Stocks to Buy for 2023”.
Performance from the above book (12/15/2022 –
12/15/2023):
+272%, compared to +9% for the RSP (equal-weight S&P 500 ETF)
This became my first twelve-bagger,
from initial purchase to its peak. Of course, no one can sell at the
peak—unless they have a time machine. I sold most of my shares, but still hold
a small position.
Here are some of my trade details:
|
Sell Date |
Return |
Annualized
return |
|
03/16/2024 |
1,133% |
885% |
|
03/18/2024 |
1,067% |
849% |
|
01/01/2024 |
320% |
299% |
|
01/09/2024 |
308% |
288% |
|
|
|
|
Looking back, I clearly sold too
early in early 2024 and missed the peak. Since these were held in a taxable
account, I was more motivated to wait out the one-year mark. Including the
profits from covered calls would have made the returns even sweeter.
Lesson: Use trailing stop orders on rapidly rising
stocks.
TTWO (Take-Two Interactive)
I bought TTWO based on strong
fundamentals and the long-term outlook for the video game industry. The stock
delivered a solid return. I sold some (unfortunately didn’t track exact
profits) and gifted shares to loved ones—who still hold them.
Performance:
+662% total return from May 1, 2015, to January 1, 2025 (annualized return:
68%)—you get $68 on the initial investment of $100 every year for almost last
10 years!
NVDA (NVIDIA)
About two years ago, during a
monthly Zoom chat with my high school classmates, Mr. X told us he was
experimenting with ChatGPT and was blown away. That caught my attention. (Mr.
X, when you're in Boston, I owe you a giant lobster dinner.)
After buying NVDA, I asked
ChatGPT what stocks it thought would perform well—and NVDA was among them. It’s
now my largest holding (as of July 8, 2025), though I’ve traded parts of it
along the way.
Note: The Forward P/E is
about 30—roughly half of the current P/E—and the new 2025 product line appears
to be sold out. The stock is fully valued in my view. A covered call I wrote
forced me to sell some shares on 05/23/2025.
|
Buy Date |
Sell Date |
Return |
Annualized
return |
|
04/02/24 |
05/23/25 |
23% |
20% |
|
07/21/23 |
05/23/25 |
138% |
75% |
|
|
|
|
|
|
Stock |
Buy Date |
Performance |
Remark |
|
NVDA |
07/21/23 |
194% |
|
|
NVDA |
04/02/24 |
48% |
|
|
NVDA |
12/15/22 |
1,206% |
Sold in 2024 |
These returns don’t even
include the profits from four covered calls in 2024 and another three in 2025.
Today (7/7/2025) my statement
showed me I have 9 positions gaining 28%. The only long-term position has 81%
profit.
Lesson: Listen to your friends, and do research before
actions.
