Over the long run, any company's stock (market cap) tracks the underlying business' earnings/cash flows.
If you want a 10-bagger, (depending on the valuation at the time of investment) you need to find a business which will grow by approximately 10X or more.
Rest is noise.
If you want a 10-bagger, (depending on the valuation at the time of investment) you need to find a business which will grow by approximately 10X or more.
Rest is noise.
Example 1 - $AXP (stock has tracked earnings for 20 years) 
Example 2 - $GE (stock has tracked earnings for 20 years)
Example 3 - $TCEHY (stock has tracked earnings for 10 years)
Example 4 - $NTES (stock has tracked earnings for 20 years)
Example 5 - $CERN (stock has tracked earnings for 20 years)
Example 6 - $GOOGL (stock has tracked earnings for 15 years)
Example 7 - $UNP (stock has tracked earnings for 20 years)
Example 8 - $COP (stock has tracked earnings for 20 years)
Example 9 - $JNJ (stock has tracked earnings for 20 years)
Example 10 - $CAT (stock has tracked earnings for 20 years)
I could go on and on but these 10 examples of bellwether companies from different industries drive home the point that over the long run, stocks (market caps) are determined by the operating results!
The end.
I could go on and on but these 10 examples of bellwether companies from different industries drive home the point that over the long run, stocks (market caps) are determined by the operating results!
The end.
