Learn from Peter Lynch but Don’t Think You Can Replicate Him

By Justin Carbonneau (@jjcarbonneau) In December, Barron’s had two good pieces on the legendary Fidelity fund manager, Peter Lynch. Packed with Lynch-isms about successful long-term investing, active stock picking and opportunities into today’s market, the articles got the attention of lots of investors, and rightfully so since Lynch was one of the most successful mutual fund managers ever, retired at the top of his game, and left a long lasting mark on a generation of… Read More

Peter Lynch: You Can’t Beat the Market if You Only Index

Barron’s recently profiled legendary investor Peter Lynch with a lengthy retrospective on his humble beginnings, his successful career at Fidelity and highlights from a December interview. Here are some key takeaways from Lynch’s comments on today’s market and the state of active investing: Lynch maintains that the state of active management—with most trailing their benchmarks—isn’t a new phenomenon. He argues that most indexes weight stocks by market value, leaning toward those that have already done… Read More

Peter Lynch on Finding Growth Opportunities in Today’s Market

A recent article in Barron’s offers highlights from a conversation with veteran stock picker and former Magellan Fund manager Peter Lynch. Here are some key points: “After 50 years of doing this professionally, it reinforces that growth stocks are better than nongrowth stocks,” Lynch said, explaining that growth stocks are defined as those that exhibit sales growth—not just earnings growth: “A company can go from losing money to a 2% margin, to a 12% margin,… Read More

Investing Lessons from Peter Lynch

A recent article in Fidelity.com offers insights from investing legend Peter Lynch. Here are some highlights: “In the stock market, the most important organ is the stomach. It’s not the brain.” Lynch says tolerance for pain is paramount because there will always be market declines. “Most people do really well,” he says, “because they just hang in there.” “More people have lost money waiting for corrections and anticipating corrections than in the actual corrections.” During… Read More

Where have all the Star Stock Pickers Gone?

By John Reese (@guruinvestor) —  The days of the star stock picker are largely gone, but aspects of their investment genius live on in other ways. In the mid to late 90s, the Fidelity Magellan fund was the largest mutual fund in existence. Run for years by the legendary Peter Lynch—during which time the fund’s return doubled that of the market– the fund went from $14 million in assets to $40 billion by the time… Read More

Keys to Investing Success and Solid Picks

In a recent Forbes article, Validea CEO John Reese shared a list of core investing concepts outlined in an essay for the CFA institute by Vanguard founder Jack Bogle, and offered parallels with tenets of market gurus such as Warren Buffett, Peter Lynch, and Joel Greenblatt: Invest you must. Failure to earn an adequate return is riskier than short term market volatility. According to Joel Greenblatt: “The strategy of putting all your eggs in one… Read More

Peter Lynch Style Investing: Simpler is Better

 In an article for this week’s Nasdaq, Validea CEO John Reese highlights the investment philosophy of guru Peter Lynch that centers on the importance of investing in what you know. “Hardly a pithy inside tip” writes Reese, “but very characteristic of the Lynch approach.” Lynch generated one of the most impressive track records of all time during his tenure as manager of Fidelity’s Magellan Fund from 1977 to 1990. Reese outlines the concepts that form… Read More

Peter Lynch’s Long-Term Game

The legendary manager of Fidelity’s Magellan fund (in the 1980s) was big on doing plenty of research before investing, writes Validea CEO John Reese in a recent issue of The Globe and Mail. Reese outlines Lynch’s investment philosophy and summarizes three maxims that the veteran fund manager outlined in his 1993 book Beating the Street; (1) do your homework, (2) invest for the long term, and (3) only buy what you understand. Surprisingly, the tenets… Read More

Peter Lynch’s Strategy and PEG Ratio Picks

The legendary manager of Fidelity’s Magellan fund (1977 to 1990) and author of One Up on Wall Street subscribed to the investment philosophy of buying into companies you could understand and then analyzing their fundamentals. One of Lynch’s go-to metrics was the PEG ratio (an indicator of value), which measured the relationship between a stock’s price-earnings ratio and its earnings-per-share growth. In a recent article for TheStreet, Validea CEO John Reese explained his Lynch-based stock… Read More

Augmented Reality Craze and Stock Picks

Earlier this month, Pokémon Go took the augmented reality world by storm, sending throngs of folks into the streets hunting monsters. In his latest article for TheStreet.com John Reese, CEO of Validea, offered his insights on AR, where it’s headed, and the potential opportunities it presents in other industry sectors. The retail sector and social media space are two areas he highlighted as rife with potential. In fact, several retailers have launched AR apps to… Read More