What does Four-bagger mean in investing?

An investment that increased four times in value

A Four-bagger is a phrase used in the investment world to describe an investment that has grown four times its original value. This term is often used by financial analysts and investors to mark a successful investment.

This term has its roots in the sport of baseball, where a ‘four bagger’ refers to a home run. In the same way, an investment that has multiplied four times is considered a ‘home run’ in the finance industry.

The use of ‘Four-bagger’ in this context was made popular by a famous American entrepreneur, who we’ll call John Doe for the sake of this explanation. Just as a baseball player scores a home run, an investor scores a ‘four bagger’ when their investment quadruples in value.

So, to put it simply, if you hear someone in the finance industry say they’ve hit a ‘Four-bagger’, it means they’ve made an investment that has quadrupled in value.

Example for using ‘Four-bagger’ in a conversation

Hey, have you heard about this term ‘Four-bagger’?

Yeah, I have! It’s slang for an investment that has quadrupled.

Exactly! It’s like hitting a home run in baseball, but for your money!

That’s right! It’s believed to be popularized by Peter Lynch, the American businessman.