Peter Lynch is a famous American investor, an iconic figure in the world of finance. For 13 years he was at the helm of the Fidelity Magellan project, which during this time became the largest fund in the world. Lynch shared his experience in the investment field in numerous books.
Biography: early years
Peter Lynch was born on January 19, 1944 in the American town of Newton, in the state of Massachusetts. His family was not rich. My father died suddenly when Peter was 10 years old. Mother was not able to provide for her family properly. At 11, Peter had to earn extra money.
He got a job at the prestigious "errand boy" golf club. His responsibilities included carrying club players. Lynch was paid 700 dollars a month for this. The lion's share of his salary went to pay for school.
Working at a golf club, he became friends with a number of influential people in his city. These acquaintances influenced the choice of life.
At 19, he first bought shares. Then Lynch invested in a company that was engaged in the transport of goods. He bought her shares at $ 7 apiece, and a year later their price soared almost five times. Lynch spent the profits on education at Boston College, where he studied finance.
In 1967, Peter served in the army. At that time, the Vietnam War was in full swing. Lynch was sent to the war zone. After returning from the army safe and sound, he entered the famous School of Business at the University of Pennsylvania.
Career
With an MBA, he got a job at Fidelity Magellan. The company specialized in investing in little-known firms in the hope of their development. Lynch worked there as an analyst.
Thanks to him, Fidelity Magellan's portfolio has always included stocks of promising firms. At one time, Lynch relied on brands such as Chrysler, Taco Bell, Dunkin 'Donuts. It is now they are known in many countries of the world and bring substantial income, but then they experienced certain difficulties. This fact never bothered Lynch. Being an excellent analyst, he knew how to anticipate the situation for several years to come.
Soon, Peter headed the research department of the company, and then he was entrusted with the management of the whole fund. Over the 13 years of operation, Lynch increased Fidelity Magellan's profit to 2700%, making it the largest fund in the world.
Newspapers and financial magazines began to write about Lynch. Soon he was named America's best investor. This title still belongs to him.
In 1990, Peter left Fidelity Magellan. By that time he was only 46 years old. However, he managed to accumulate a decent amount of money, which allowed him to live comfortably on interest. After leaving the world of big finances, Lynch began to devote a lot of time to his family.
Despite Peter’s multi-million wealth and home in an elite neighborhood, the Lynch family lived modestly. Peter handed over fees from the sale of books to a charity fund, which he created with his wife in 1987. He was mainly engaged in spouse. According to Lynch, she lived with this fund. Spouses sponsored many Catholic schools in the United States, monetary encouraging her students.
Many attribute Lynch’s success solely to luck. However, it is not. The basis of his work is a set of rules. This is confirmed by Lynch's books in which he shares secrets with his fellow investors. Very popular is his guide "Replay Wall Street." It has been sold in millions of copies and is still being reprinted.
In it, Peter spoke in detail about his strategy in the investment market. So, he tried to acquire shares of little-known firms for a long time. It is important that they work in a narrow niche, and he understands the product of their activities.
Lynch was in no hurry to invest in companies that were engaged in high technology. In those days, few believed in their success; Peter was no exception. But Lynch often acquired the shares of companies working in the field of catering. He believed that they would certainly bring profit, because people always want to eat. Lynch shunned investments in every possible way and compared them to playing in a casino.
Peter believed that money can be earned at any age. He even published a textbook on investments for children and adolescents. In it, he shares his basic secrets in a simplified form.
