Company: Fidelity Magellan (1977-90)
Credo: Buy what you understand.
Best-seller: "Strategy and tactics of the individual investor" (1989).
Quote: "Any will have enough brains to follow stock market. If you know mathematics at the level of the fifth class, you will deal with it".
Principles. In the 80es Lynch turned Fidelity Magellan fund into one of the world's largest mutual funds, having brought average annual profitability taking into account capitalization to 29%. Its confidential ingredient: to take shares with value of coefficient of P/E on a historical minimum, avoiding fast-growing players and without paying attention to market forecasts. His ideas perfectly worked and led to emergence of the whole generation of analysts who applied similar experience of investment. But in 1990 a continuous 13-year series of victories of Lynch in the market ended with losses in 4,5%. After that the investor retired.
Invest like Lynch. Don't take a share of Twitter or Amazon, buy what AAII.com and Validea.com (on the sites there is a filter of actions by Peter Lynch's criteria) advises. Among such papers: NetApp, Barrett Business Services, Honda, Publix and Alliance Fiber Optic
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