Peter Lynch
Grew Fidelity Magellan Fund from $18M to $14B
Peter Lynch
Value Investing
Key Stats
Net Worth
$450 Million
Origin
American
Lifespan
Born 1944 (82 years old)
Biography
Peter Lynch is one of the most successful mutual fund managers in history. During his tenure at Fidelity Magellan Fund from 1977 to 1990, he achieved an average annual return of 29.2%, making it the best-performing mutual fund in the world.
Fidelity Magellan
Lynch took over Fidelity Magellan in 1977 when it had $18 million in assets. By the time he retired in 1990, the fund had grown to over $14 billion—a testament to both his investment returns and the investor capital he attracted.
Investment Philosophy
Lynch popularized the concept of "invest in what you know":
- GARP: Growth at a Reasonable Price
- Ten Bagger: Stocks that increase 10x in value
- Stalwarts vs. Fast Growers: Different strategies for different company types
- Do Your Homework: Thoroughly research every investment
Trading Philosophy
"Know what you own, and know why you own it." Lynch believes individual investors have advantages over professionals if they stick to what they know and do their research.
Famous Trades
Dunkin' Donuts
Lynch's classic "invest in what you know" pick—he noticed the long lines at Dunkin' Donuts.
Ten Bagger
+1000%
Legendary Quotes
"Know what you own, and know why you own it."
"Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it."
"In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work."
Recommended Reading
One Up On Wall Street
How to use what you already know to make money in the market
Beating the Street
More insights on stock picking
Learn to Earn
Introduction to investing for beginners