Ahh, the mystical 10-bagger. A stock that has delivered its investors a 10x return on their initial investment. Initially coined by legendary investor Peter Lynch, who was a fan of discovering undervalued stocks with sustainable and attractive earnings per share growth, a love of 10-baggers saw Lynch's Magellan Fund achieve a 29.2% average return over the 13 years he managed it. 

In his book, One Up on Wall Street, Lynch wrote, “In my business a four-bagger is nice, but a ten-bagger is the fiscal equivalent of two home runs and a double.”

While this anonymous writer may not know anything about sports, I do know a few talented local fund managers who can help investors identify the ASX's next great 10-baggers. 

So, in this episode, Livewire's Ally Selby was joined by Ausbil's Andrew Peros and Ellerston's David Keelan. They share their secrets to identifying long-term compounders, the importance of backing strong founders, the red flags investors should look out for, and whether profitless companies are a problem or worth the risk. 

Plus, they each name a company that they believe could become the ASX's next 10-bagger. 

Note: This episode of Buy Hold Sell was recorded on Wednesday 20 November 2024. You can read an edited transcript below. 

https://www.livewiremarkets.com/wires/could-these-2-stocks-become-the-asx-s-next-10-baggers/