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Peter Lynch's Principles

Overview

Managed Fidelity Magellan through one of the most famous mutual fund runs.

Style

Growth at a reasonable price, consumer insight, company stories

Firm

Fidelity Magellan Fund

Period

1944-

Peter Lynch

Principles

Repeatable rules that beginners can study and adapt.

Applicable principles

Understand the business before buying the stock.

The growth story must be confirmed by numbers.

Classify stocks by growth, cyclicality, turnaround, or asset value.

Do not buy only because of rumors or attractive names.

Turn these principles into a pre-investment checklist. If an idea cannot pass the checklist, staying out is often better than forcing action.