Famous Investors: Peter Lynch

Peter Lynch was the legendary investor whose best investment was likely his investment in the Fidelity Magellan Fund, which he managed from 1977 to 1990. During his tenure, Lynch grew the fund from $18 million to $14 billion in assets, achieving an annualized return of 29.2%, significantly outperforming the S&P 500 index.

Fidelity Magellan Fund

The Fidelity Magellan Fund is a mutual fund that was managed by Peter Lynch from 1977 to 1990. The fund was one of the largest and most successful mutual funds of its time, with assets reaching $14 billion at its peak. The fund's investment objective was to achieve long-term capital appreciation by investing primarily in common stocks of domestic and foreign issuers.

The Fidelity Magellan Fund remains a popular mutual fund today, although it is now managed by different portfolio managers. It is still focused on investing primarily in domestic and foreign common stocks with the objective of achieving long-term capital appreciation.

Investment strategy

Lynch had a disciplined investment strategy, focusing on companies with strong fundamentals, attractive valuations, and potential for growth. He believed in investing in what he knew and understood, and he frequently visited companies, met with management teams, and did his own research. Lynch was also known for his ability to spot emerging trends and invest in companies poised to benefit from them, such as in the case of his investments in technology companies like Apple and Intel.

Lynch's success with the Fidelity Magellan Fund made him one of the most successful and respected investors of his time, and his investment philosophy and strategies continue to be studied and emulated by investors today.

His investments

Peter Lynch is known for his investments in many successful companies during his tenure as the manager of the Fidelity Magellan Fund from 1977 to 1990. Some of the most notable companies in which Lynch invested during this time include:

• Walmart
• McDonald's
• General Electric
• Ford Motor Company
• Intel
• Eastman Kodak
• Merck & Co.
• The Limited
• PepsiCo
• Chrysler Corporation

It's worth noting that these investments were made in the past and may not reflect Lynch's current investment holdings or opinions.

Famous quotes to remember

Here are some of his most famous quotes:

1. "The person that turns over the most rocks wins the game."
2. "Invest in what you know."
3. "Know what you own, and know why you own it."
4. "In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten."
5. "Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it."
6. "The best investment you can make is in your own abilities. Anything you can do to develop your own abilities or business is likely to be more productive."
7. "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets."
8. "The stock market is filled with individuals who know the price of everything, but the value of nothing."
9. "The simpler it is, the better I like it."
10. "There's no shame in losing money on a stock. Everybody does it. What is shameful is to hold on to a stock, or worse, to buy more of it when the fundamentals are deteriorating."

Books to read

One Up On Wall Street

This book, published in 1989, is a classic guide to investing in stocks. Lynch shares his investment philosophy and provides practical advice on how to identify and invest in promising companies.

Beating the Street

In this book, published in 1993, Lynch shares his insights into the world of investing and provides valuable tips and strategies for investors.

Learn to Earn

This book, co-authored with John Rothchild and published in 1995, is aimed at novice investors and provides a basic understanding of investing in the stock market.

What is Peter Lynch worth?

Peter Lynch's net worth is estimated to be around $500 million. While he made a significant amount of money during his tenure as the manager of the Fidelity Magellan Fund, Lynch has also been involved in philanthropic efforts, particularly in the area of education. He has donated millions of dollars to various educational institutions, including his alma mater, Boston College. It's worth noting that net worth estimates can vary widely based on different sources and the fluctuations in the value of assets.