Fidelity's Magellan Fund Manager Peter Lynch Was a Stock-Picking Rockstar in the 1980s, Averaging an Annual Return of 29%. Could His Top Rule Then Work for You Now?
Motley Fool·
- Fidelity's Magellan Fund manager Peter Lynch achieved a 29% average annual return from 1977 to 1990 by following the core rule of investing in what you know.
- However, this strategy no longer provides a strategic edge today because the internet ensures universal access to information and modern markets reward unprofitable growth companies early.
- Additionally, cheap online trading has increased market volatility and trading frequency, making traditional valuation approaches less reliable than they were in the 1980s.