Two-Bagger

Business, Legal & Accounting Glossary

Definition: Two-Bagger


Two-Bagger


Full Definition of Two-Bagger


two-bagger is an investment that has doubled, that has risen 100% or more.

We believe it was Peter Lynch whose seminal book, One Up on Wall Street, popularized the concept of baggers, borrowed from America’s national pastime of baseball. In baseball, a double is often referred to as a “two-bagger.” The same parlance is used, by extension, to refer to an investment that has doubled.

Newer Fools often ask the question, “When my stock doubles, was that a one-bagger or a two-bagger?” It seems counterintuitive that you’d get a “one-bagger” just for showing up — just for buying in the first place — which is why this is a frequently asked question. And also, a double is a 100% gain, which also looks visually wrong, as you’d think a two-bagger shouldn’t be 100% but 200%, but of course, it is just 100%.

Just remember that a double in baseball and in investing is a two-bagger. You’ll have no problem using the phrase; indeed, you’ll have quite a lot of fun using the phrase when you achieve a double!

Similarly, a three-bagger is when you triple your money, etc.

To summarize:

  • A two-bagger is a stock that doubles, gaining 100%.
  • A three-bagger is a stock that triples, gaining 200%.
  • A four-bagger is also considered a home run 300%
  • Et cetera.

Related Phrases


10-bagger
Daybagger
Peter Lynch
One Up on Wall Street


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Definition Sources


Definitions for Two-Bagger are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 28th November, 2021 | 0 Views.