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Investing Lessons from Peter Lynch By: Aaditya Shah (Nirma University)
When it comes to Investing, Peter Lynch is known as one of the best fund managers in the history of US Stock Markets. Lynch managed the Magellan Fund, where he generated an average return of 29.2% for 13 years, which is considered one of the best performances by a mutual fund ever. The Magellan Fund’s AUM grew from $18 million to $14 billion under the tenure of Peter Lynch. Lynch started his investment career by investing in an air-freight company called Flying Tiger, which helped him pay for graduate school. Peter Lynch is the author of some of the best-selling books on investing, such as One Up on the Wall Street and Beating the Street, and is credited with inventing many popular stock valuation methods. Picking stocks is a difficult task where not everyone can be successful. Peter Lynch laid out some foundations that he followed as his investment mantra, allowing him to earn huge returns. By following these lessons, you can improve your chances of wealth creation, and who knows, you may be the next Peter Lynch!
Source: https://fintrovert.com/blogs/top-15-peter-lynchquotes/
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Invest in what you know
It is important to be familiar with the company and the industry you are investing in, as this provides you an edge over the average investor. Do you have intimate knowledge of the industry? Can you connect the dots? Consider the following example: You are in the business of selling cars. You have a good amount of knowledge of the internal specifications of cars and know what type of cars are selling like hot cakes in the market. A company launches a new car, and by understanding its features, you are convinced it will be a huge success.
