There may not be a cookie cutter approach to finding multibaggers. For example, this term defines stocks that rise 2x or more. While nabbing a stock that doubles is nice, we invest in microcaps because they present lots of opportunities to find stocks that can rise 5x to 10x over time.

Still, with about 10,000 microcap stocks trading in North America, there are some traits or factors that continue to pop up in past multibaggers that you can reference during your research process to find the next one.

For example, companies that don’t issue an excessive amount of outstanding shares over time protects investors’ ownership interest in the company by limiting dilution.