Peter Lynch – a great value investor looking for big-baggers

Click hePeter Lynch is renowned as the best-performing fund manager.  He achieved this status whilst acting as the portfolio manager of Fidelity’s Magellan Fund.  During the years from 1977 to 1990, he achieved an annual rate of return of 29.2%, turning a $1,000 investment 13 years later into $28,000.  His fund performed consistently, beating the US stock market in all but two of his 13 years at the helm.  The asset base grew from $18 million to $14,000 million, making it the largest in the world, and attracted over 1 million shareholders by the time he decided to quit in 1990.
At the age of 46, he chose to spend more time with his wife and daughters and doing charitable work.  (This is the same age at which his own father, a mathematics professor then senior auditor, had died.  A memory which may have motivated his decision to stop his workaholic habits.)
When looking at an investment, Lynch seeks a particular combination of characteristics.  Some of these characteristics are in the list of criteria used by many other value investors, e.g. a strong, competitive business with financial strength;  others are peculiar to Lynch.
He liked to favour the best-performing company in an unpopular industry.  He is strongly of the opinion that small, private investors can have considerable advantages over professional fund managers, and can outperform them, so long as they do their research and stick to what they know.
For Lynch,  investing is not complicated.  If the company analysis you are undertaking starts to get too complicated,  forget that company and move on to the next share.
There is so much you can learn from Lynch:

• The value of everyday experience in leading you to some great investments – if you keep your eyes open.
• To have faith in the dedicated amateur investor who can frequently out-perform the so-called professional
• Look for niche companies – small, aggressively-run companies offering fast but not super-fast growth in earnings.
• Place money in shares with the potential to be at least 10-baggers (1000% rise)

The Beginning
Lynch grew up in an era when everyone remembered the depression and distrusted the stock market, saying   ‘never get involved in buying shares, it’s too risky.  You’ll just lose all your money’.
However, after the death of his father, Lynch did som
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