Investor
January 19, 1944 (age 78)
Newton, Massachusetts, U.S.
New Worth: $450M
One of history’s most prosperous and well-known investors is Peter Lynch. The renowned Lynch served as the previous manager of the Magellan Fund at the prestigious investment firm Fidelity. At the age of 33, he took over the fund and oversaw it for 13 years. At age 46, he was able to retire in 1990 because of his accomplishments. Lynch’s approach to investing has been characterized as flexible to the economic climate of the time, but he always emphasized that you should be able to comprehend what you possess.
“You never can predict the economy. You can’t predict the stock market.” – Peter Lynch
Investment Philosophy & Strategy
Lynch invests in “stories.” In other words, each stock choice is based on a realistic forecast of the company’s growth potential. The expectations are formed from the “narrative” of the company, which describes what the organization plans to accomplish or what will occur in order to achieve the intended goals. Lynch is a strong proponent of investing in companies whose products or services are generally simple to understand or with which one is familiar. Lynch claims that instead of investing in satellite communications, he would rather do so in “pantyhose” and “motel chains” instead of fiber optics.
Investment Methodology
Peter Lynch takes a strictly bottom-up method, choosing firms from the investor’s known list and then conducting fundamental analysis, emphasizing in-depth knowledge of the business, its future, its market, and if the stock can be bought at a fair price.
Top Holdings
- Fidelity Magellan Fund
- Ambika Cotton Mills Ltd.
- GM Breweries Ltd
- Panama Petrochem Ltd.
- WestRock
- Maithan Alloys
- Jindal Poly Films
- D-link India
- Chaman Lal Setia Exports Ltd.
- Mindtree
- Cigniti Technologies Limited
- Menon Bearings Ltd.
- Sutlej Textiles and Industries Ltd.
- CMS Info Systems
- Balaji Amines Ltd.