Lynch: This Is “Extraordinary Period” for Investing

In an exclusive interview with Israel’s Globes, mutual fund legend Peter Lynch says he thinks the past ten years have been an anomaly for the stock market, and that we are currently in an “extraordinary period” for stock investing. “The significance of the lost decade is very simple,” Lynch said, referencing the term some have used to describe stocks’ performance over the past ten years. “Companies earn more than they did ten years ago, and… Read More

Reese: Looking at Lynch’s Famous “P/E/G” Ratio

John Reese, CEO and founder of Validea.com and Validea Capital, looks at the Peter Lynch “P/E/G”  ratio in this Globe & Mail Expert Podium column. The P/E/G was one of Lynch’s favorite valuation measures and it is calculated by dividing a stock’s P/E ratio by its growth rate. “The P/E/G tells you how much you’re paying to get a piece of a company’s growth, and Lynch found it to be a great way to identify… Read More

GARP, PEGS, and Peter Lynch

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This week’s issue looks at the Peter Lynch-inspired P/E/Growth Investor strategy, which is up more than 47% this year and more than 81% since its inception more than six years ago. Below is an excerpt from the newsletter along with several top-scoring stock ideas based on the Lynch investment strategy. Taken from the September 18, 2009… Read More

The Wisdom of Lynch & Templeton

Here’s an oldie but a very, very goodie — a Louis Rukeyser interview with Peter Lynch and the late John Templeton. The exact date of the video (posted on YouTube by ValueInvestingPro) isn’t given, but the references to the troubles in Kuwait and Lynch’s retirement make it clear the interview took place in the latter part of 1990 or the beginning of 1991. Lynch and Templeton cover a variety of topics — from the efficient… Read More

Lynch Pupil Makes Major Bank Move

FBR Funds Chief Investment Officer David Ellison, who avoided much of the financial sector meltdown, has been buying up bank shares lately — and a big reason, he says, involves the lessons he learned while working under the great Peter Lynch earlier in his career. According to Reuters, Ellison had just 10% of the FBR Large-Cap Financial fund’s assets in cash in early 2007, but raised that to 30% by the fall of ’07 and… Read More

What Will the Recovery Look Like?

A “U”, a “V”, an “L” — Time magazine takes a look at what we might expect in the coming economic recovery, with insight from top strategists such as Peter Lynch and Jean-Marie Eveillard. A sampling of the advice: Lynch says that waiting for a major economic recovery to occur before jumping back into the market can cost you a lot. “People think that things need to go from terrible to terrific before they can… Read More

Gross, Lynch, Malkiel: Varied Perspectives on Current Market

In interviews with the Washington Post, three top market minds — former Fidelity star manager Peter Lynch, PIMCO’s bond guru Bill Gross, and Princeton professor and author Burton Malkiel — offer some pretty wide-ranging views on the stock market and where we’re headed. Lynch and Malkiel express a fairly bullish take for long-term investors. Lynch says that the recent market plunge has affected great and good companies as well as mediocre firms. “It’s brought them… Read More

Lynch: Stocks Still Best Choice for Long Term

In a recent interview with The New York Times, former Fidelity star manager Peter Lynch says that the recent market plunge and financial crisis hasn’t shaken his belief that stocks are the best long-term choice for investors. “I can’t tell you anything about where the market will be in the next six months or 12 months or two years,” Lynch said. “But at some point in the future, I think you’ll look back and see… Read More