Jump to content

Great article by Peter Lynch


Yours Truly
 Share

Recommended Posts

I have been doing a lot of bio reading on past successful value-oriented managers with exceptional track records and Peter Lynch is definitely is at the top of my list... I just completed reading up about Julien Robertson of formerly, Tiger Management however the books on him don't really divest into his process and methods

Link to comment
Share on other sites

If you guys like Lynch's investment style and writing, definitely check out Francois Rochon of Giverny Capital's articles and annual reports.  He has an excellent track record in the past +15 years of 14% annum returns I believe.

 

http://www.montrealgazette.com/search/search.html?q=Fran%C3%A7ois+Rochon

 

http://www.givernycapital.com/en/rapports

Link to comment
Share on other sites

Thanks for the links on Francois Rochon. I agree about him, he has a talent for stocks and good articles with specific stock opinions.  He is one of the few investors to  recommend (or analyze ) MTY group which has been a good investment for me. Unfortunately Francois was lost to me in the Euro Macro noise of the last few years.

Link to comment
Share on other sites

 

" In 1977, Lynch was named head of the then obscure Magellan Fund which had $18 million in assets. By the time Lynch resigned as a fund manager in 1990, the fund had grown to more than $14 billion in assets with more than 1,000 individual stock positions. From 1977 until 1990, the Magellan fund averaged a 29.2% return"

 

 

Lynch is one of my favorites as well, really enjoyed reading his books, great humor and fantastic investing insights.

Link to comment
Share on other sites

 

" In 1977, Lynch was named head of the then obscure Magellan Fund which had $18 million in assets. By the time Lynch resigned as a fund manager in 1990, the fund had grown to more than $14 billion in assets with more than 1,000 individual stock positions. From 1977 until 1990, the Magellan fund averaged a 29.2% return"

 

 

Lynch is one of my favorites as well, really enjoyed reading his books, great humor and fantastic investing insights.

 

What I find ridiculous is that he owned more than 1,000 stocks in his portfolio and still made 29.2% annual return... there must have been tons of 100, 1000, 10,000 baggers

Link to comment
Share on other sites

 

" In 1977, Lynch was named head of the then obscure Magellan Fund which had $18 million in assets. By the time Lynch resigned as a fund manager in 1990, the fund had grown to more than $14 billion in assets with more than 1,000 individual stock positions. From 1977 until 1990, the Magellan fund averaged a 29.2% return"

 

 

Lynch is one of my favorites as well, really enjoyed reading his books, great humor and fantastic investing insights.

 

What I find ridiculous is that he owned more than 1,000 stocks in his portfolio and still made 29.2% annual return... there must have been tons of 100, 1000, 10,000 baggers

He did have massive amounts of token investments for screening purposes, right? While certainly more diversified than Buffett, I don't think he was as diversified as those figures would indicate at a glance.

Link to comment
Share on other sites

 

" In 1977, Lynch was named head of the then obscure Magellan Fund which had $18 million in assets. By the time Lynch resigned as a fund manager in 1990, the fund had grown to more than $14 billion in assets with more than 1,000 individual stock positions. From 1977 until 1990, the Magellan fund averaged a 29.2% return"

 

 

Lynch is one of my favorites as well, really enjoyed reading his books, great humor and fantastic investing insights.

 

What I find ridiculous is that he owned more than 1,000 stocks in his portfolio and still made 29.2% annual return... there must have been tons of 100, 1000, 10,000 baggers

He did have massive amounts of token investments for screening purposes, right? While certainly more diversified than Buffett, I don't think he was as diversified as those figures would indicate at a glance.

Exactly. He held extremely small positions in a large number of stocks simply because it forced him to actually keep tabs on those companies & industries. 

Link to comment
Share on other sites

I'd like to know how concentrated his top 10 holdings were.. I couldn't find this online anywhere nor any published annual reports during his tenure at Fidelity

 

Read his books. There were limits on the % of Magellan he could buy in one stock (5% I think?). Though, he could keep all of it if he did not sell. For that reason, Chrysler's price increase threatened at one moment to make it like 10% of his port. He had hundreds of positions and there are several anecdotes of him going through the very long list and the constant visiting of companies.

 

I don't want to end with prematurely white hair like him.

Link to comment
Share on other sites

I'd like to know how concentrated his top 10 holdings were.. I couldn't find this online anywhere nor any published annual reports during his tenure at Fidelity

 

Read his books. There were limits on the % of Magellan he could buy in one stock (5% I think?). Though, he could keep all of it if he did not sell. For that reason, Chrysler's price increase threatened at one moment to make it like 10% of his port. He had hundreds of positions and there are several anecdotes of him going through the very long list and the constant visiting of companies.

 

I don't want to end with prematurely white hair like him.

 

Ahh yes, mutual fund rules.. supposedly he was working 70-hour days and visiting 40 companies a month which burnt him out

 

Here's a nice find - "The amazing thing is that even with assets of $9 billion -- the size of Guatemala's GNP -- Magellan continues to outpace the market. Through the fund, Lynch owns stocks of 1,400 companies, or 13% of all of America's publicly traded corporations. "

Link to comment
Share on other sites

Ahh yes, mutual fund rules.. supposedly he was working 70-hour days and visiting 40 companies a month which burnt him out

 

I had a few 70 hour days but they were all in Vegas -- ah, youth.

8)

 

Seriously, though, Lynch is probably the single best guy on process.  For the right situation -- especially tax-deferred accounts -- his methods are incredibly powerful and easy to follow.

 

If, as a beginner investor, you read the famous Buffett recommendation of Chapters 8 and 20 of Graham's "Intelligent Investor" and all of Lynch's stuff, you'd be set.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...