How Just One 10 Bagger Stock Can Supercharge Your Overall Returns

Peter Lynch who coined the term 10 bagger grew his mutual fund Fidelity Magellan from 1977 to 1990 with an average on return of 29%. In his book One Up On Wall Street, he describes how to use common sense and financial analysis to make money in the markets.

But if you read the book carefully you’ll see that he attributed his success over this time to 10 baggers. He stressed that just having one 10 bagger in your portfolio could make a dramatic difference in your returns.

In the book he showed a chart to illustrate this point. He showed two strategies. One you invested 10,000 among 10 stocks. In the second strategy, you invest the same 10,000 but also include a potential 10 bagger. The first strategy with 10,000 grew to 13,000 in a time span of 3 years a 30% return. This was a period when the markets were up 40%.

The second strategy with the same 10 stocks but including the additional 10 bagger went up 110%. The reason being the 10 bagger went up 900%. The original 10,000 turned into 21,000, triple the market rate. Lynch goes on to say you only have to find one big winner out of the 11 to have this occur. This is the strategy of turnaround Stock Investing we find 10 baggers for you so that you can outperform the markets.