Peter Lynch coined the term multi-bagger. He used it to describe shares that rose in value in a short space of time. It has to be said that Peter Lynch was very good at his job. Between 1977 and 1990, Lynch’s Magellan fund averaged a 29% return.
But while, Lynch was a great stock picker, you could have done just as well with a portfolio of these three Straits Times Index (SGX: ^STI) shares in your portfolio over the last ten years.
Jardine Strategic Holdings (SGX: J37) is a conglomerate, which means that it is Jack of all trades. But unlike the rest of the popular ditty, it is a master of all. It has interests that span supermarkets to car sales, and from property to hotels. Admittedly, not all its parts might move in the same direction at the same time but they have gelled well enough over the last decade to have delivered a 28% annual return for shareholders..
Many people might associate Genting Singapore (SGX: G13) solely with gambling. But the company does a lot more than that. It has transformed Sentosa Island from a quiet and relatively unknown part of Singapore to a popular integrated resort for the family. Sentosa boasts the world’s largest oceanarium and a Universal Studio theme park. The company has also served its long-term investors well. Although its dividend is nothing to crow about, its capital growth on the other hand is. It has delivered a total return of 27% a year over the last ten years.
Singapore Exchange (SGX: S68) has benefitted greatly from being the only integrated securities derivatives exchange in Singapore. It has done wonders for its Return on Equity, which is an important part of driving returns for shareholders. After all, the higher the return, the more money can be ploughed back into the business to improve its operation. In the case of Singapore Exchange, it has allowed the company to deliver an average total return of 26% since 2003.
A total return of 26% a year for ten years would mean that a $1 investment would turn into $10 over a decade – in other words a ten bagger. So, you don’t need to be Peter Lynch to be a successful investor. There are many shares sitting on our doorstep here in Singapore that are just as likely to be the next ten-baggers in your portfolio.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.