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Peter Lynch

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updated 21 Feb 2023

Peter Lynch is an American businessman and investor who is best known for his tenure as the manager of the Fidelity Magellan Fund, one of the most successful mutual funds of all time. Lynch is considered to be one of the most successful investors of all time, and his investment philosophy is widely studied and respected.

Lynch's investment philosophy is centered on growth investing, which involves identifying companies with strong growth prospects and buying their stocks at a reasonable price. He believes that the key to successful investing is to find companies that have a strong competitive advantage and that are undervalued by the market.

Lynch is also known for his emphasis on thorough research and due diligence when making investment decisions. He believes that investors should be patient and should not try to time the market, but instead should focus on finding good companies and holding them for the long-term.

One of Lynch's key strategies is to look for companies that have a strong brand and a loyal customer base. He believes that companies with strong brands are more likely to be successful in the long-term and that they are more likely to weather economic downturns.

Lynch also emphasizes the importance of understanding the industry and the company's competitive position. He believes that investors should have a clear understanding of the industry trends, the company's competitive position, and the management's ability to navigate through difficult times. Peter would agree with Buffett and Munger that you should stay within your circle of competence and "know what you own and why you own it".

Lynch is also known for his approach to finding potential investments, he encourages investors to look for companies that they know and understand, such as companies they interact with in their daily lives. He believes that this approach allows investors to identify potential investments that they might otherwise have overlooked.

Overall, Lynch's investment philosophy is centered on growth investing, with an emphasis on thorough research, due diligence, and a long-term investment horizon. He believes that investors should focus on finding good companies with strong growth prospects and buying them at a reasonable price, while also paying attention to the industry trends, the company's competitive position, and the management's ability to navigate through difficult times.

Books

Peter Lynch is the author of "One Up Wall Street: How to use what your already know to make money in the Market".

Best Investments

Peter Lynch is known for his successful tenure as the manager of the Fidelity Magellan Fund, during which he generated significant returns for investors. Some of his best-known investments include:

It's worth noting that Lynch's investment approach was centered on growth investing, where he looked for companies with strong growth prospects and undervalued by the market. He also believed in the power of a strong brand and the ability of a company to navigate through difficult times. The above companies have generated significant returns for investors, and are considered some of Lynch's best investments.

Quotes

"If you spend 13 minutes a year on Economics, you've wasted 10 minutes"

"You have got plenty of time...You could by Walmart 10 years after it went public and made 30x your money"

"Know what you own, and why you own it"

Peter Lynch's Best Speech

Peter Lynch Everything you need to know about Investing in One Video