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Finance Friday: Investments and multi-baggers

If you are not familiar with multi-bagger investments, it simply means the value of your investment goes up by multiples of what you originally paid for it. This is a far cry from the 1.5% per year that banks offer on some accounts (including the bonus!).

I bought Premier Foods in 2011 for just 4p a share. That later consolidated on a 10 shares for one basis and so those 4p shares became 40p shares. The price went to 186. That is a multi-bagger. That is over 300% up. I didn’t sell and when a right issue came along I bought those too. My average price is just over 46p and today’s share price is just 45p. Many of the directors bought at an average of about 80p so I’m confident they will go up again. I still should have sold at 186p!

Lloyds Banking group has been a multi-bagger for me too. I bought at about 30p and now they are 74p; more than double. I think they will go to 90p and beyond that. I paid 282.2 for RBS and they are on 348.7, they could be a multi-bagger if I keep them a few years; which isn’t likely.

One share that became a multi-bagger for me this morning was Solo Oil. That was a risk, but I didn’t invest too much in it. On Wednesday they started drilling in the UK and that sent the price up. Yesterday, good news from Tanzania sent the price soaring again. That was about the seismic data, that seems to show more gas than was anticipated before. Today, I had an doctors appointment so while I sat around doing nothing in the waiting room I switched data on for my phone and checked out a few prices. I was surprised to see Solo had gone to double what I had paid for it. It has dropped back a little this afternoon, which is a shame, but there is always next week!

The other share price of interest today was Graphene Nano who have a high tech lubricant for the oil industry that is doing well. I think that is a potential multi-bagger too. Remember to use a quantitative strategy when buying shares though. Invest more in low risk companies, less in the speculative ones.

You have probably seen how quickly people can get to a million on ‘Who Wants to be a Millionaire’. The money doubles with each question. You don’t need many multi-baggers to make your fortune either.

Remember these posts are for amusement only, I don’t give investment advice. I do go through phases when my investments lose value. I just happen to be on a up phase at the moment!

Please comment if you have a view or a question. You can also follow me on Twitter for updates.

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  1. Pingback: The review: an interesting week | Mike10613's Blog

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