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Stocks B / Berkshire Hathaway


Subject:  Re: Bags? Bagger? Date:  5/10/2013  1:36 PM
Author:  jkm929 Number:  201622 of 256769

I have some shares of stock.

Back when I bought them, I paid $26.28 for them. They now go for $89.37. Conveniently, the stock pays no dividends.

So is this a 2.4 bagger or a 3.4 bagger? I.e., what is the definition of a bag? I tend to favor calling it a 2.4 bagger, and if it was $26.28 today, it is a 0 bagger, not a 1 bagger. Is this what people agree on?

If you bet $26.28 and collect $89.37, your profit is $63.09, Odds are defined as the ratio of what you win to what you bet. In this case it would be 63.09/26.28 = 2.40068. What you call a 2.4 bagger is really the odds, 2.4 to 1.

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