u/MultibaggerInvestor

The study's primary finding is that multibagger stocks overwhelmingly start as small-caps, with a median market cap of $348M. The "size effect was one of the cleanest patterns." This implies that the most fertile ground for finding future massive winners is within the small-cap universe. An investor seeking to replicate these findings should overweight their portfolio towards smaller companies. The analysis strongly supports a long-term, strategic allocation to small-cap stocks, as represented by the IWM ETF, to capture the "size effect" that is a prerequisite for finding multibaggers according to the study. Small-cap stocks are historically more volatile and sensitive to economic downturns and rising interest rates. The study's findings could be a result of historical data mining and may not hold true in future market regimes.