| Peter
Lynch is best known for
his work with the Magellan Fund through
Fidelity Investments. He grew the fund from
$18 million to $14 billion over the course
of 13 years. His investment strategies and
policies have been studied around the world
and Lynch wrote about investing in a series
of books published during his career. Although
he still works with Fidelity Investments,
he now spends most of his time engaged in
philanthropic endeavors.
Peter
Lynch was born on January 19, 1944 in
Newton, Massachusetts and later attended
Boston College to study finance. He graduated
in 1965 and was hired as an intern with
Fidelity Investments the following year.
Lynch had been working as a caddy for
the president of Fidelity, as well as
other investment bankers, at the Brae
Burn Country Club in nearby Newton and
had befriended the gentlemen.
After
working with the paper, chemical, and
publishing industries in Fidelity, Peter
Lynch took two years to join the Army
and serve his country. When he returned
in 1969, Fidelity hired him full time
and put him in charge of investments involving
textiles, mining, metals, and chemicals.
Five years later, in 1974, Fidelity made
Lynch the director of research and three
years later he was named the head of the
Magellan Fund.
In
1977, the Magellan Fund was small and
obscure, worth a limited $18 million in
assets. Thirteen years later, in 1990,
the Magellan Fund was worth $14 billion
largely due to Lynch's work.
Due
to the success of his investments, Peter
Lynch wrote investment books alongside
co-author John Rothchild. One Up on Wall
Street, Beating the Street, and Learn
to Earn were published during his career.
Although they discuss theories and the
application of these theories, Lynch's
greatest feat was creating strategies
that anyone could use. Investors today
still rely on these books.
Peter
Lynch never had one specific investment
style, instead he changed his strategies
with changes in the market. According
to Lynch, despite his "chameleon"
approach to investments, he did rely on
certain core investment principles. He
firmly believed that no one could predict
fluctuations in the economy or interest
rates and therefore it was futile to try
and do so. As a result, he was an advocate
of research and suggested that people
take the time to identify great companies
in which to invest instead of taking long
shots.
Lynch
also believed in good management and that
individuals looking to invest in a company
should study the management structure
and the people in charge of running the
business. Most importantly, however, Peter
Lynch believed in buying what you know.
Familiarity is key according to Lynch.
Although
he still serves as vice-chairman of Fidelity
Management & Research Co., the investment
advisor to Fidelity Investments, he spends
most of his time on philanthropic endeavors.
He gives money through the Lynch Foundation,
Fidelity Charitable Gift Fund, and charitable
trusts. The foundation named for Peter
Lynch supports religious organizations,
cultural and historical organization,
education, and medicine.
This Peter Lynch biography may
not be reproduced online.
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