Though he continues to work part time as vice chairman of Fidelity Management & Research Co., the investment adviser arm of Fidelity Investments, spending most of his time mentoring young analysts, Peter Lynch focuses a great deal of time on philanthropy. He said he views philanthropy as a form of investment.
Where does Peter Lynch live now?
Mr. Lynch said his grandchildren are in the Boston area and in California, so he now spends very little time in Arizona. His wife, Carolyn, died last year, and "there's no way I'm going there by myself."
What is Peter Lynch investing in?
For this reason, Lynch is a strong advocate of investing in companies with which one is familiar, or whose products or services are relatively easy to understand. Thus, Lynch says he would rather invest in "pantyhose rather than communications satellites," and "motel chains rather than fiber optics."
What is Peter Lynch strategy?
Peter Lynch's approach is strictly bottom-up, with selection from among companies with which the investor is familiar, and then through fundamental analysis that emphasizes a thorough understanding of the company, its prospects, its competitive environment, and whether the stock can be purchased at a reasonable price.
What fund does Peter Lynch manage?
Magellan fund
What is Peter Lynch's strategy of investing?
Lynch prefers companies that buy their shares back over firms that choose to expand into unrelated businesses. The buyback will help to support the stock price and is usually performed when management feels share price is favorable.
What did Peter Lynch argue the average investor should do?
Market. A well-known key principle of Peter Lynch's investment philosophy is that you should only invest for the long run and discard short-term market gyrations. Lynch has said, "Absent a lot of surprises, stocks are relatively predictable over ten to twenty years.
How did Peter Lynch make money?
Mr. Lynch developed his investment philosophy at Fidelity Management and Research, and gained his considerable fame managing Fidelity's Magellan Fund. The fund was among the highest-ranking stock funds throughout Mr. Lynch's tenure, which began in 1977 at the fund's launching, and ended in 1990, when Mr.
Why does Peter Lynch favor stocks that do not have institutional ownership?
Peter Lynch, in his best-seller One Up on Wall Street, lists the 13 characteristics of the perfect stock. One of them is this: "Institutions don't own it and the analysts don't follow it."8 Lynch favors stocks that the big investment groups overlook because these stocks have more of a chance of being undervalued.