3 Essential Steps for Finding 10-Baggers

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

David recently studied 10-baggers like lululemon athletica, ZAGG (a maker of electronic device accessories), and Kodiak Oil and Gas. He came away from that exercise with three steps for trying to identify 10-baggers. First, investors should be able to imagine a great future for the company. Second, they must embrace the possibility that they will be wrong. And finally, they should heed one of the best lessons of all from Peter Lynch, the man who coined the term "10-bagger" in the first place.

Motley Fool co-founder David Gardner has found a few 10-baggers over the course of his career. Recently, he identified a small-cap health-care company that he believes is poised for monster returns. To uncover this top pick today, enjoy the special free report: "Discover the Next Rule-Breaking Multibagger." Don't miss out on this limited-time offer and your opportunity to discover this game-changing company before the market does. Click here to access your report -- it's totally free.

At the time this article was published David Meier owns shares of Infinera. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Infinera , lululemon sthletica, and MAKO Surgical.Motley Fool newsletter services recommendInfinera , lululemon athletica, and MAKO Surgical. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story