Born in 1944, legendary American stock investor Peter Lynch is perhaps the greatest mutual fund manager of all time with his fund being among the highest-ranked stock funds from its inception in 1977 to his retirement in 1990. The fund returned +29.2% p.a. almost doubling the S&P 500’s +15.8% p.a. over that time.
Invest In What You Understand
Lynch developed his investment philosophy at Fidelity Management and gained his considerable fame managing the Fidelity Magellan Fund. Lynch’s common sense approach and quick wit made him one of the most quoted investors on Wall Street. “Go for a business that any idiot can run — because sooner or later, an idiot is probably going to run it,” is one of his many pearls of wisdom.
Lynch’s screening approach is strictly bottom-up, focusing on companies familiar to the investor, along with fundamental analysis, which emphasizes a thorough understanding of the company, its prospects, its competitive environment, and whether the stock can be purchased at a reasonable price. Lynch is a “story” investor as each stock chosen is based on a well-grounded expectation concerning the firm’s growth prospects and what the company is going to do, or what is going to happen to bring about the desired results.
Lynch’s Credentials and Further Reading
Lynch graduated from Boston College in 1965 and earned a MBA from the Wharton School of the University of Pennsylvania in 1968. His basic strategy is detailed in his best-selling book “One Up on Wall Street“, which provides individual investors with numerous guidelines for adapting and implementing his approach. His most recent book, “Beating the Street” amplifies the theme of his first book, providing examples of his approach to specific companies and industries in which he has invested.
Apply the strategy of this legendary stock investor on meetinvest.com today!