GLEN ARNOLD INVESTMENTS
  • About
  • Newsletter
  • Books
    • My Books
    • Other Books
  • Blog
  • Portfolio
    • Buffett-style
    • Modified price earnings ratio
    • Net Current Asset Value
  • Resources
    • glossary of investment terms >
      • A - B
      • C
      • D - E
      • F - G
      • H - I - J - K
      • L - M - N
      • O - P
      • Q - R
      • S
      • T - U - V - W - Y - Z
    • TOP 10 TIPS FOR INVESTORS

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

30/11/2021

0 Comments

 
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
re to edit.
0 Comments



Leave a Reply.

    Picture

    Prof. Glen Arnold

    I'm a full-time investor running my portfolio from peaceful Leicestershire countryside. I also happen to be UK´s best selling investment book author and a Financial Times Best selling author.

    Originally, I wrote all my ideas out in full on this website. Now that ADVFN publish them they are entitled to display the full version for six months – you can see them here. Thus can I only post the first few paragraphs here for anything younger than six months.

    I write 2 to 3 newsletters per week - investing is about making the right decisions, not many decisions.

    Categories

    All
    Berkshire Hathaway (NYSE:BRK.A)
    Caffyns
    Capital And Counties
    Character Group
    Charlie Munger
    Connect Group
    Daejan-lsedjan
    Dewhurst-lsedwhta
    Highcroft
    Investment-ideas
    Investment Philosophy
    John Templeton
    J Smart
    McCarthy And Stone
    MS International
    Orchard Funding
    Samuel Heath
    Tandem
    TClarke (LSE:CTO)
    Town Centre Securities
    Wynnstay

    Archives

    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020

    RSS Feed

In the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long-run, the market is a weighing machine.  Benjamin Graham




  • About
  • Newsletter
  • Books
    • My Books
    • Other Books
  • Blog
  • Portfolio
    • Buffett-style
    • Modified price earnings ratio
    • Net Current Asset Value
  • Resources
    • glossary of investment terms >
      • A - B
      • C
      • D - E
      • F - G
      • H - I - J - K
      • L - M - N
      • O - P
      • Q - R
      • S
      • T - U - V - W - Y - Z
    • TOP 10 TIPS FOR INVESTORS