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Strategic Investing in Stocks: A Long-Term Investment for Retailer Framework

Authors:

*Aryan Raj, MBA Amity University, Raipur, aryanraj89639@gmail.com

**Dr. Payal Dubey, Assistant Professor, Amity University Raipur, pdubey@rpr.amity.edu

Abstract:

This research paper investigates the phenomenon of "multibagger stocks," defined as equity investments yielding returns exceeding 100% of the initial capital, often multiplying it several times over. Popularized by Peter Lynch, these stocks are highly coveted for their potential to generate exponential wealth and achieve significant financial goals. The study employs a descriptive and analytical research design, integrating both quantitative and qualitative data from 150 investors, stock market indices, and company financial reports. Key findings reveal a strong positive correlation (r = +0.68) between longer investment horizons and higher average annual returns (14.2% for 5+ years vs. 6.4% for <1 year), coupled with significantly lower volatility. Behavioral discipline, including emotional control and goal-oriented investing, emerged as a critical success factor. The paper identifies core characteristics of multibagger stocks, including strong profitability, steady earnings growth, excellent financial standing, and strategic valuation. In terms of quality, scalable business models, the existence of a sustained competitive advantage (economic moats), and visionary leadership are critical. Macro and sectoral analysis, thorough basic research, and a disciplined investment philosophy are all components of a strategic framework for identification. These concepts are demonstrated in practice through case studies of Indian multibaggers such as Infosys, Titan, Asian Paints, Pidilite, Divi's Laboratories, and Bajaj Finance. The study's conclusion highlights that effective multibagger investment requires patience, diversification, and ongoing learning to manage inherent market and company-specific risks. It also requires a combination of meticulous quantitative analysis and perceptive qualitative assessment.