Peter Lynch Turned Fidelity Magellan From $18 Million Into $14 Billion With a 29% Annual Return. Here's Whether His "Invest in What You Know" Strategy Still Works Today.
Lynch's run from 1977 to 1990 is viewed as one of the best ever.
Overview
There haven't been many better fund managers throughout history than Peter Lynch. Through his illustrious career, Lynch proved to be one of the best stock pickers in the investing world. Between 1977 and 1990, Lynch managed Fidelity's Magellan mutual fund and put up incredible returns. His annual average returns of roughly 29% helped turn $18 million into $14 billion over that time frame, far outperforming the broader stock market and making him one of the best on Wall Street.
When asked for advice for common investors, Lynch always recommended that people simply "invest in what you know." By this, Lynch refers to a concept in which people draw on personal experiences and their understanding of the products and services they use in their own lives to generate investment ideas.
Details
Does this strategy still work today?
Source
Originally published at www.fool.com.