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Writer's pictureIshfaaq Peerally

Investing in Tenbaggers



🔟 A Tenbagger is an investment which has returned 10X initial investment or 1000%. For example, GameStop $GME is a Tenbagger for me (Actually at some point, it was even a Hundredbagger). The term Tenbagger was first coined by Peter Lynch.


💸 Peter Lynch is often referred to as the 𝙜𝙧𝙚𝙖𝙩𝙚𝙨𝙩 𝙞𝙣𝙫𝙚𝙨𝙩𝙤𝙧 𝙖𝙡𝙞𝙫𝙚, returning on average 29% per year during his 13 years at Magellan Fund owned by Fidelity (Warren Buffett $BRK.B returned 19% while the S&P 500 $SPX500 10%). Warren Buffett is richer because he invested for longer and because of the insurance business of Berkshire Hathaway providing cashflow.


🧠 The success of Peter Lynch only came from a few companies which gave him these 1000% returns. Peter Lynch always invested in industries which he knew very well and in small companies.


💰 If you have 10 stocks in your portfolio, 7 have average returns in 10 years, 2 goes bankrupt, and 1 is a tenbagger, you will still manage to beat the market because of this one great investment, the tenbagger.


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