Outperformance
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Author
David Fourie StephensIn this post, I will summarise a recent study conducted by Dede Eyesan regarding global companies that have returned more than 1000% in 10 years. 
A detailed twitter thread can be found here:
https://twitter.com/dede_eyesan/status/1610274243551297540?t=rnBo0OoLRC324pP2OVez8w&s=19
The study looked at companies over the period 2012-2022. Roughly, 3% of all companies studied returned more than 1000% equating to 446 companies. 
1. Cheap
Most of the companies that outperformed were relatively cheap with about 50% having an EV/EBIT ratio below 10.
2. Profitable 
More than 80% of the companies were already profitable in 2012 which is quite surprising.
3. Size 
The vast majority of companies were small companies with only 3% having a market cap of > $2 Billion. Less than 1% of companies were large caps i.e., > $10 Billion.
4. Geography
India was the best performing country by quite a wide margin. The following countries, excluding the US, also did quite well: Sweden, Japan, China, Israel, Australia, South Korea and Greece.
5. Industries 
Unsurprisingly, the tech sector had the most outperformers while the boring utilities had the fewest outperformers. Industries that did quite well included: industrials and materials. 
6. Themes
Some thematic sectors did really indicating that identifying such trends might be a worthwhile endeavour. These industries include: solar, lithium and cell-based therapy. 
7. In with the new
Winners don't stay winners forerver. Only 23 out of the 300 outperformers from the previous decade i.e., 2002-2012 remained on the list.
My Takeaway:
Buying cheap profitable small companies are probably the best way to become an owner of a '10-Bagger' stock.