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 since his retirement 25 years ago, especially the rise of exchange-traded funds. “People accept that active managers can’t beat the market,” he said,” and it’s just not true.” Indeed, Fidelity reports that three-quarters of its 49 funds that have retained the same manager for over five years are beating their benchmark over the manager’s tenure.