October 26, 2025
Asymmetric Upside
- High
Asymmetric
Dow Jones +0.83%
Peter Lynch
Chairman of the Lynch Foundation
Newton, Massachusetts, U.S.
Fidelity Investments (1966 - 1990)
Highlights
- Portfolio Manager: He became the portfolio manager of the Magellan Fund in 1977 at the age of 33.
- Remarkable Returns: Lynch averaged a 29.2% annual return, consistently more than doubling the S&P 500 stock market index and making the Magellan Fund the best-performing mutual fund in the world.
- Author: Lynch is a successful author, having written several books including "One Up On Wall Street" (1989), "Beating the Street" (1993), and "Learn to Earn" (1995), which have inspired countless individual investors and professionals.
Investment Philosophy
- Invest in What You Know: Lynch famously advised individual investors to buy stocks in companies they’re familiar with or in industries they understand.
- The P/E Growth Ratio: Lynch popularized the use of the price-to-earnings growth (PEG) ratio to find companies that were priced attractively relative to their growth potential.
- The Story Behind the Stock: He often talked about the importance of the "story" of a company and the necessity for a stock to have a narrative that predicts a prosperous future.
Skills
- Patience and Long-term Focus: Lynch was known for his patience and long-term investment horizon, resisting the short-term trading mentality that can lead to higher risks and missed opportunities.
- Risk Management:He had a natural skill for balancing risk and reward, often avoiding the "hot stocks" that carried high expectations and opting for lower-profile or less glamorous companies with solid fundamentals.
- Decisiveness:Lynch was known for his decisiveness in acting on information and his convictions, which is crucial in taking advantage of time-sensitive opportunities in the market.
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Asymmetric