My Personal 4-Bagger

You can’t imagine the trouble I’ve managed to get myself into with English idioms; being a fresh-off-the-boat, ESL type, so many -isms come along just trying to force my faceplant. My good friends educate and help me along, mere acquaintances  merely cringe. But before I go too far down the side road of my unintentional racisms, I will explain the ‘x’-bagger.

Peter Lynch, author of “One Up On Wall Street”, referred to the bagger, drawing on baseball parlance. I am told, a double is referred to as a “two-bagger”, and when extended to a stock holding, a “two-bagger” is a stock that has doubled. Of course, just to make the numbers thing interesting, a “two-bagger” is in fact up by 100%.

For the first-time reader of this journal, I point you back to this entry to set the backstory for this particular portfolio.

Having been caught offside with excess foreign funds (Newmont Mining) in my RRSP, I decided to spread those assets over 5 TSX Dogs. Having backtested my theory over a period of 5 years, I was entirely confident to throw my own money at this model portfolio, and today, 12 years since I threw caution and ⅓ of my portfolio to the wind, I can claim my very own 4-bagger. 300% cumulative, 12.77% compound to be exact.

Point being, and there has to be a point to eliminate the threat of hubris, you, dear reader can do this. Your miserable mutual funds can’t (and in fact don’t want to), even if you drank the kool-aid and held strong over the decades, but you can! Get a calendar; get a spreadsheet app that can sort descending on yield and refresh yourself on the process here. Do it …

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