Peter Lynch is best known for his work with the Magellan Fund through Fidelity Investments. He grew the fund from $18 million to $14 billion over the course of 13 years. His investment strategies and policies have been studied around the world and Lynch wrote about investing in a series of books published during his career. Although he still works with Fidelity Investments, he now spends most of his time engaged in philanthropic endeavors.
Peter Lynch was born on January 19, 1944 in Newton, Massachusetts and later attended Boston College to study finance. He graduated in 1965 and was hired as an intern with Fidelity Investments the following year. Lynch had been working as a caddy for the president of Fidelity, as well as other investment bankers, at the Brae Burn Country Club in nearby Newton and had befriended the gentlemen.
After working with the paper, chemical, and publishing industries in Fidelity, Peter Lynch took two years to join the Army and serve his country. When he returned in 1969, Fidelity hired him full time and put him in charge of investments involving textiles, mining, metals, and chemicals. Five years later, in 1974, Fidelity made Lynch the director of research and three years later he was named the head of the Magellan Fund.
In 1977, the Magellan Fund was small and obscure, worth a limited $18 million in assets. Thirteen years later, in 1990, the Magellan Fund was worth $14 billion largely due to Lynch’s work.
Due to the success of his investments, Peter Lynch wrote investment books alongside co-author John Rothchild. One Up on Wall Street, Beating the Street, and Learn to Earn were published during his career. Although they discuss theories and the application of these theories, Lynch’s greatest feat was creating strategies that anyone could use. Investors today still rely on these books.
Peter Lynch never had one specific investment style, instead he changed his strategies with changes in the market. According to Lynch, despite his “chameleon” approach to investments, he did rely on certain core investment principles. He firmly believed that no one could predict fluctuations in the economy or interest rates and therefore it was futile to try and do so. As a result, he was an advocate of research and suggested that people take the time to identify great companies in which to invest instead of taking long shots.
Lynch also believed in good management and that individuals looking to invest in a company should study the management structure and the people in charge of running the business. Most importantly, however, Peter Lynch believed in buying what you know. Familiarity is key according to Lynch.
Although he still serves as vice-chairman of Fidelity Management & Research Co., the investment advisor to Fidelity Investments, he spends most of his time on philanthropic endeavors. He gives money through the Lynch Foundation, Fidelity Charitable Gift Fund, and charitable trusts. The foundation named for Peter Lynch supports religious organizations, cultural and historical organization, education, and medicine.
When one person suffers from a delusion it is called insanity; when many people suffer from a delusion it is called religion
The most happy marriage I can picture or imagine to myself would be the union of a deaf man to a blind woman