Hello and welcome to Brokonomics my lovely Brokonomicons and in this episode I thought well since

last week last week I did I did that fancy newfangled Bitcoin stuff didn't I and and I'm sure you will like that, but some of you might not have done. So I thought, well, this week, let's do good old-fashioned 80-style stocks and shares investing. And I was actually a fun manager for about 10 years or so and I never figured out why we call it stocks and shares as opposed to just shares or stocks.

There must be a reason for that. I don't know what it is, maybe Peter knows so anyway so I'm going to

I'm going to do it based on this book Peter Lynch's one up on Wall Street so he

was a fantastically successful fund manager.

He ran the Magellan Fund, the Fidelity's Investments

Magellan Fund, and he ran it for about 13 years

from 1977 to 1999. and in that time the the assets under management

grew from 18 million to 14 billion and he achieved a rate of return of about 30% a year, 29.2% on average was his annual

return.

So he ended up with the best performing mutual fund in the world.

And of course he popularized his whole philosophy and his way of doing things, which we're going to be talking about today. He popularized

the term 10bagger, stocks that appreciate 10fold from the initial investments, and he

emphasized investing in companies that you understand with strong

fundamentals that he believed were undervalued by the market. So yes, very

successful. Much of that appreciation of funds under management that came from people seeing the

success he was generating putting money in because of course if you if you compound

18 million for 13 years it's about half a billion something like that.

So you know it's still an extraordinary level of success but people flock to him

after he retired and he retired at a fairly young age. I think he retired in his mid-40s or something.

And then he wrote a book on how it is done. So it is genuinely one of the best books in investing. Actually true story

when I first started in in the fundamental management business on the first day the

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