Peter Lynch is a successful Magellan trader
Super successful stock trader and author of three bestsellers, Peter LynchHowever, it has long been on well-deserved rest and is away from the turbulent vicissitudes of the market.
Always listen to adults, especially when playing golf
As with many children in the postwar era (born in 1944), the Peter Lynch was not an easy childhood, aggravated by the loss of his father at the age of ten. So already at the age of eleven, the boy was working as a part-time golf club handler. On a strange whim of fate, this hardly an honorable occupation had a decisive influence on further events in the life of a young boy. The regulars at that golf club were big businessmen and businessmen who liked to negotiate the cost of shares companies and their chances of growth. Little Peter listened intently to these conversations, and soon he was mesmerized by the magical world of finance. By the time he entered college, he already knew what he would be majoring in - economics and finance at Boston College.
However, money for studies was catastrophically short, and Peter decided at his own risk for the first time in his life to play the stock market. Having conducted a preliminary analysis of the air cargo market, considering it the most promising, Lynch chose the company Flying Tiger and spent all his savings of 1000$ to buy its stock. Peter was lucky: the Vietnam War had broken out, stock indices everywhere were plummeting, but Flying Tiger received a contract to carry military equipment, and the company's stock price increased nearly tenfold. Gradually selling previously purchased securities as they rose, Peter used the proceeds to pay for his college education.
You can't do too much with acquaintances.
A year after graduating from college, in 1966, Peter Lynch was adopted in the Fidelity InvestmentsAfter competing for 75 people for three positions. In his resume, the young man humorously remarked that for eight years he had carried clubs for the man who was president of Fidelity at the time. Oddly enough, the latter still remembered the recent bearer, and with good professional knowledge, Peter got a position as a research analyst for enterprises in the chemical and publishing sectors. Having excelled in this industry, the young professional also soon took up shares in companies in the textile, mining and metallurgical industries. After a short time Peter Lynch became one of the company's most important employees, is promoted to director of research at the company, and in 1977 he is appointed Magellan fund manager, owned by Fidelity.
During the 13 years of Lynch's management, Magellan's total assets grew by more than 2700% (from $20 million to $14 billion), and the fund's portfolio, which included shares of 45 companies in 1977, in 1990 already included shares of 1200. A wise manager made both thorough research and intuitive decisions. For example, he turned his attention to Taco Bell, a fast-food chain specializing in Mexican food, after he liked the burritos they made. Peter Lynch With a professional eye, he looked for companies that could stand alone against market fluctuations. "If you look among ten companies, you will find only one worthwhile one, if among twenty, two, among a hundred, ten. The one who turns over the most rocks and looks under them gets the most benefit," he used to say.
The basic rule of Peter Lynch is was a meticulous study of the state of the chosen object, regardless of the state of the market. He spent very little time on the analysis of macroeconomic indicators, but gave preference to direct personal communication with clients and partners, setting 40-50 meetings every month and managing to make several dozens of calls per month. Also the famous manager Avoided working with futures и options.
Popularizer of the stock market
In 1990, at the age of 46, Peter Lynch surprised many by leaving Magellan. The former manager himself attributed it to the fact that work was taking up too much time. Now he could write books, devote himself to his family and play his favorite baseball game. Peter Lynch's Literary Works ("The Peter Lynch Method," "Beat Wall Street," "Learning to Earn") are highly regarded among both novice and experienced investors. In his books, the author explains how to become an expert in his company and how to build a profitable investment portfolio based on his own experience, intuition and independent market research. Peter Lynch derived a personal approachHe emphasized the importance of patience and fortitude for the investor, and also insisted that a layman can easily find future growth leaders among companies that are invisible to professionals.