Can stocks go up 1,000 times? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Can stocks go up 1,000 times?

Apr 16, 2012

It is not for nothing that stocks are called as the most attractive asset class over the long run. If the business opportunity is huge and is pursued with strong focus on profitability and shareholder value creation, sky is the limit we reckon. Forget 10-baggers, 100-baggers or even 500-baggers for that matter, stocks could go up so much that they have the potential to become 1,000-baggers. In other words, the earliest shareholders can see their wealth go up as much as 1,000 times and that too, within a pretty reasonable time horizon of 2-3 decades. Although the time horizon in which such gains are achieved can be longer in some cases and shorter in others.

Are there any such stocks in India currently? There certainly are we believe. The table below highlights the stocks from the BSE-200 universe that have gone on to become 1,000 baggers since the time of their inception. Put differently, the table consists of the list of stocks where current prices are more than 1,000 times the face value of these entities.

Company Latest price/Face value (x)
Colgate-Palmolive (India) Ltd 1,114
Tata Consultancy Services Ltd 1,070
MRF Ltd 1,066
CRISIL Ltd 1,061
Hero MotoCorp Ltd 1,029
*Latest price as on April 13, 2012

So, are there any common set of qualities that have made the above mentioned stocks phenomenally successful? We certainly think so. As can be seen, all the stocks mentioned above are part of industries that are not only big currently but also have huge growth potential going forward. Besides, almost all the companies in the list are runaway market leaders in their respective sectors. Not to forget their pristine balance sheets and the high returns on capital as compared to their peer group.

The above table also makes us think about all this hullaballoo most people place on valuations being in right ballpark. For if investors would have overpaid slightly more for this companies, they would have had hardly any reasons to complain over the long term. This thus goes to show that over the long term, it is the business model, the quality of the management and the return on capital employed that matters and not so much the valuations. Of course, this does not mean that one buy the company at even the most absurd level of valuations. This is certainly not advisable. What can be done though is that a small premium can be given if the quality of the business is too irresistible to pass up. For not doing so could result in a heavy notional loss. As Warren Buffett has rightly pointed out, it is far better to buy a good business at a fair price than a fair one at a good price.

Rahul Shah

Rahul Shah (Research Analyst), Managing Editor, Microcap Millionaires has led the team from the front in developing some of our most stringent and rewarding research processes. As per his own admission, the turning point in Rahul's life as a financial analyst came a few years back when he got introduced to the works of Warren Buffett and Charlie Munger. From Buffett, he understood the value of investing in good quality business with powerful moats and strong management teams. Charlie Munger on the other hand inspired him to be a lifelong learner and use mental models in order to arrive at the crux of matters across most disciplines. Rahul firmly believes that in order to be successful at investing, you have to do the big things right and possess a great temperament and a contrarian streak.

Equitymaster requests your view! Post a comment on "Can stocks go up 1,000 times?". Click here!

4 Responses to "Can stocks go up 1,000 times?"

Rangaswamy Guruswamy

Jan 21, 2016

It can go 1000 times or more but has any one really..... made money 1000 times including you or your team members. Reference to past records one can project such figures for attracting subscribers..



Jan 15, 2015



Vunay Kumar Singh

Sep 26, 2014

Yes. Check Suven Life

Like (2)

Vunay Kumar Singh

Sep 26, 2014

Yes. Check Suven Life

Like (1)
Equitymaster requests your view! Post a comment on "Can stocks go up 1,000 times?". Click here!

More Views on News

Top 5 Recent IPO Developments You Should Know (Views On News)

May 12, 2021

So far in 2021, IPOs in India have raised nearly US$ 3 bn, the best start to the year since 2018.

How Did Mindtree Perform in Q4FY21? (Company Info)

Apr 20, 2021

Here's the rundown on the company's latest quarterly results.

5 Big IPOs to Look Forward to in 2021 (Views On News)

Jun 19, 2021

A peak into the hype around the IPOs of internet companies like Zomato and Paytm

HDFC Banking and Financial Services Fund: Emphasizes on the Growing Sector (Outside View)

Jun 18, 2021

PersonalFN analyses the features of HDFC Banking and Financial Services Fund and explains the potential this fund has to offer to its investors.

Can You Make More than 100 Times Your Investment? (Profit Hunter)

Jun 18, 2021

The open secret to multiplying your money in forever stocks.

More Views on News

Most Popular

How to Identify Multibagger Stocks

A few useful pointers on how to zero in on a potential multibagger stock.

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jun 18, 2021 (Close)