Peter Lynch (born January 19, 1944) is an American investor, mutual fund manager, and philanthropist. He managed the Fidelity Magellan Fund from 1977 to 1990, achieving an average annual return of 29.2%, making it the best-performing mutual fund in the world during that period. Lynch is famous for his "invest in what you know" philosophy, encouraging individual investors to use...
"Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves."
Trying to avoid downturns costs more than enduring them.
Read Full Analysis →"People who succeed in the stock market also accept periodic losses and setbacks. Losses and setbacks are key to eventually finding the big winners. Stock prices follow earnings."
Long-term stock prices track business earnings, not sentiment.
Read Full Analysis →"Behind every stock is a company. Find out what it's doing. If the company is doing well, the stock will eventually follow."
Focus on business quality, not stock price.
Read Full Analysis →Peter Lynch has 3 key principles on margin of safety. The most important one is "Markets Always Recover" — Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves...
Peter Lynch applies margin of safety through several key principles including "Markets Always Recover" and "Prices Follow Earnings". These principles guide practical investment decisions and have been tested across decades of market cycles.
Peter Lynch's approach to margin of safety is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Peter Lynch provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
