There’s Much More to “Buy What you Know” says Legendary Fund Manager Peter Lynch

  Peter Lynch, the super-star manager of the Fidelity Magellan Fund until 1990, says the famous advice to “invest what you know” attributed to him leaves out the importance of fundamental stock research. As reported in the Wall Street Journal recently, Lynch “explains his philosophy this way: Use your specialized knowledge to hone in on stocks you can analyze, study them and then decide if they’re worth owning.” Lynch also noted changes in the market… Read More

Would Lynch, Buffett, and Graham Like Apple, Facebook, and GE?

How do Apple, Facebook, Berkshire Hathaway, and other market giants stack up against the strategies used by history’s greatest investors? In his latest column for Forbes.com, Validea CEO John P. Reese takes a look at how 10 market titans fare, and the results might surprise you. Reese notes that, historically, small stocks have beaten large stocks by a significant margin. Small stocks have an advantage because they can fly under the radar in a way… Read More

Top Manager Borrowing From the Peter Lynch Playbook

Putnam manager Jerry Sullivan takes a three-pronged approach to picking stocks, including approaches reminiscent of Fidelity’s Peter Lynch, with whom Sullivan began his career. As a student intern 30 years ago, Sullivan caught Lynch’s eye and was offered a permanent position with Fidelity. He turned it down, but his approach to managing Putnam funds includes elements that suggest he learned a lot in those early days. Sullivan’s Putnam Multi-Cap Core fund has returned an annualized… Read More

Guru Stock Screen of the Week: Lynch Approved Stocks + Low Valuations + Long-Term Earnings Growth + Dividends

This week, we bring you the Stock Screen of the week from Validea. On Validea.com, you can screen for stocks using the site’s Guru Stock Screener, which scores stocks based on the fundamental stock selection criteria of legendary investors. The firm’s models are based on investing legends such as Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joel Greenblatt and others. The Advanced Guru Stock Screener allows users to create their… Read More

Peter Lynch And High-Dividend Stocks

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Peter Lynch-inspired strategy, which has averaged annual returns of 11.2% since its July 2003 inception vs. 6.4% for the S&P 500. Below is an excerpt from the newsletter, along with several recent top-scoring stock ideas from the Lynch-based investment strategy.

How Peter Lynch Doubled The Market At Magellan

Every other issue of the Validea Hot List newsletter examines in detail one of John P. Reese’s computerized Guru Strategies. This latest issue looks at the Peter Lynch-inspired strategy, up 10.9% annualized since its mid-2003 inception vs. 6.6% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Lynch-based investment strategy.

Great Pages: Peter Lynch on The Mayans and "Penultimate Preparedness"

Can a single page of a book change your investment life? We believe it can. Periodically, we highlight some of the Great Pages that have had a great impact on our investment philosophy. Today, we cheat ever so slightly, taking a bit of a second page from Peter Lynch’s classic One Up on Wall Street. But trust us, it’s worth it to see Lynch compare stock market machinations to Mayan mythology.