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Peter Lynch’s Investment Strategy

Updated: Aug 2, 2021

The Greatest Investors: Peter Lynch Peter Lynch’s spot in the list of greatest investors stems in large part from his work with the Fidelity Magellan Fund between 1977 and 1990. During this 13-year period, the fund posted an annual average return of 29%, beating the S&P 500 index in 11 out of 13 years and building the fund’s assets from $20 million to $14 billion. The fund had the best 20-year return rate of any mutual fund in history.

  1. Only invest what you could afford to lose without that loss having any effect on your daily life in the foreseeable future.

  2. Necessary qualities of an investor in order to succeed. Of course this would include an investment advisor.patience. self-reliance common sense open-mindedness tolerance for pain detachment persistence humility flexibility willingness to do independent research an equal willingness to admit to mistakes ability to ignore general panic

  3. Invest in companies, not the stock market.

  4. Ignore short term fluctuations

  5. Large profits can be made in common stocks.

  6. Large losses can be made in common stocks.

  7. Predicting the economy is futile

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