Peter Lynch
Peter lynch is one of the most successful investors and a former manager of the Magellan Fund at the major investment brokerage firm Fidelity. He took over the fund in 1977 at the age of 33 and managed it for 13 years.
Peter was born in 1944 in the United States, and at the age of ten he lost his father due to cancer, and after the death of his father the financial situation of his family has become bad, so he began to work as a caddy in some golf club, and because of this job began his interest in the world of stocks, as he used to hear conversations between investors, which ignited this interest in stocks.
Peter studied at Boston college on a partial scholarship and paid off the rest by caddying. He graduated from the college in 1965 with a degree in finance.
Peter Lynch's career began at Fidelity Investments in 1966, where he started as an intern at the company partly because of him being the caddy to the then President of Fidelity in golf and later became an official employee in 1969.
Peter was then assigned to follow up on textiles, minerals, mining and chemicals, which led to his appointment as Head of Research at Fidelity from 1974 to 1977.
In 1977 Peter was appointed head of the Magellan Investment Fund, which at the time was a relatively unknown fund with approximately $18 million in assets.
Peter continued to manage the fund until he resigned in 1990 after contributing to the fund's growth to more than $14 billion in assets and more than 1,000 individual stock positions.
Since Peter was the head of an unknown investment fund, he was free to decide what assets he could buy.
Peter focused all his attention on individual companies, starting with the large US companies and then gradually shifting his focus to smaller and global stocks.
From 1977 to 1990, the Magellan Investment Fund achieved an average annual return of 29.2%, which is more than double what the S&P 500 achieved at the time.
and in 2003 it achieved the best return over 20 years, more than any other mutual fund.
Lynch popularized the economic concept of 'local knowledge' through his investment principle, 'Invest in what you know'. Individual investors can find undervalued stocks by applying the principle of "invest in what you know", because most people tend to specialize in certain areas. According to Peter, investors should start by following this principle. Moreover, he often pointed out that individuals are probably better at spotting good investments than fund managers because they are able to spot them during their daily lives before Wall Street.
Peter retired at the age of 46, and after his retirement, he dedicated his life to doing good, as much of his profits go to associations and donations. He has donated $10 million to the university from which he graduated.
Resources:
https://www.investopedia.com/terms/p/peterlynch.asp https://home.csulb.edu/~pammerma/fin382/screener/lynch.htm https://rb.gy/mk443k
Prepared By:
Layan Alsubaiee
Lamis Alkhunain