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Stocks B / Berkshire Hathaway

URL:  https://boards.fool.com/lynch-used-it-because-of-the-baseball-reference-30677571.aspx

Subject:  Re: Bags? Bagger? Date:  5/10/2013  1:13 PM
Author:  DrtThrwingMonkey Number:  201621 of 256769

Lynch used it because of the baseball reference where a "double" is a
2-bagger. I'd personally use it as a multiple of the original price.


If baseball is the analogy, then a 10 bagger would have to be up 11 times the original price. Why? Well, if a double is a 2-bagger, then a single would be a 1-bagger, which is still better than nothing. Get enough singles, and you will still win the game. Whereas if having your stock start at $25 and stay at $25, you can't really call that a 1-bagger - you'll never win the game that way.

In mathematics, this is a common problem, the question of whether you include the starting point or not. In medicine, day 3 of a hospital stay means you've been there 2 days, although some places use day zero to make things more confusing. Even in theology, 'the third day, he rose again' means that Jesus was only dead for 2 days, not 3.

But I agree that a 10-bagger usually means your $25 share went to $250. To change analogies, you started with one bag of gold, and now you have 10 bags. Or in the case of Tesla, I started by owing one bag, and now I owe 2. I propose that this be called a 2-beggar.

Regards, DTM
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