This is the part 2 of the article. Read the Part 1.
Since 1977, Peter Lynch had been appointed director of little-known Magellan Fund, assets of which totaling 18 million dollars. For 13 years of fund management the financier managed to increase this amount to $ 14 billion and more than 1,000 stock positions. During this period, Magellan, on average, earned 29.2% return.
When calculating the statistics for 20 years in 2003, it turned out that the growth rates of the mutual fund were the highest in the history of this type of organizations. Peter Lynch has also achieved outstanding success in working with securities of Philip Morris, Volvo, Ford, MCI, General Electric, Lowe’s and other. According to Jason Zweig from The Intelligent Investor, Lynch deserves the status of the legendary investor. The 46-year-old prominent financier decided to retire and devote himself to philanthropy.
Peter Lynch’s books are downloaded and bought in hundreds of copies daily – the success of this talented investor is an excellent example to follow. He considers the main reference points of the activity to be the analysis of the industry and the financial situation of the company, as well as observation. According to Lynch, sometimes an attentive amateur is able to detect promising enterprises even before “Wall Street sharks” pay attention to them.
Peter Lynch also focuses on the staying power and an ability to listen to professionals. Actually, he willingly shares “technical” nuances of his approach to making money in the publications and in speeches. An exhaustive description of many secrets of the stock exchange is present in the book “One Up on Wall Street”; “Beating the Street” is also popular among traders and investors due to the attention to detail and practical advice. The proposed assessment methods and interpretation of financial indicators can be mastered by virtually everyone regardless of professional education. The Lynch’s unconventional way of thinking and absolute rationalism helped him to develop an effective approach to investing, which is based on diligence, attentiveness and openness to new information.