Course 508:
Great Investors: Peter Lynch
In this course
1 Introduction
2 Invest in What You Know
3 Seize a Good Opportunity
4 Profitability, Price, and a Good Business Model

Peter Lynch ended the 1990s hobnobbing with Don Rickles and Lily Tomlin in television commercials. But when it comes to investing, Lynch should be taken seriously. He drew acclaim for his success as manager of Fidelity Magellan FMAGX, the mutual fund he ran from 1977 to 1990. When Lynch became Magellan's manager in 1977, the fund had $20 million in assets. Lynch's track record at Magellan drew investors at a rapid rate, and by 1983 the fund’s assets topped $1 billion. During the 13 years that Lynch ran the fund, Magellan underperformed the annual return of the S&P 500 stock index only twice--this even after Magellan was the nation's largest mutual fund with $13 billion in assets. (It's considered exceptional when managers can maintain high returns after their fund's assets have swelled, because gargantuan portfolios have limited investment options.) The sheer size of Magellan was part of Lynch's aura. No one else had managed such a big fund with so much success. In his seminal 1989 book, One Up on Wall Street, Lynch spelled out his stock-picking strategy.

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