Peter Lynch has been one of the most successful investors in the mutual fund business. He famously ran the Fidelity Magellan Fund from 1977 until 1990, delivering annual average returns of 29% that made it a top-ranked mutual fund over the investment period.
He beat the major S&P 500 index in 11 of 13 years, even as the fund ultimately reached $13 billion under management. Achieving outperformance for so many years with such a big fund is particularly difficult, which is why Lynch enjoys a strong reputation on the Street.
Lynch has also written and co-written several best-selling books about investing, which continue to excite readers thanks to their easy-to-apply investment methodology.
Here are three key thoughts about investments from Lynch.
1. Do your homework and select your investments wisely
Lynch famously said,"The person that turns over the most rocks wins the game. And that's always been my philosophy."
The Foolish takeaway
Peter Lynch has been an extremely successful equity investor, and his investment philosophy contains some valuable nuggets for the investor today.
His investing approach is as timeless as it is direct: do your research, be willing to turn over a lot of stones to find value, invest for the long term, and don't mindlessly trade stocks.
This philosophy has produced Lynch's sterling returns over a long time period, and the application of such timeless investing principles might serve your returns just as well.
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