The Lynch Screener
"Invest in what you know."
— Peter Lynch
Peter Lynch's Philosophy
Peter Lynch managed the Fidelity Magellan Fund from 1977 to 1990, averaging 29% annual returns. He turned $18 million into $14 billion by finding growth companies before Wall Street noticed them.
Key Principles
- Invest in What You Know: Use your everyday experiences to find opportunities
- Local Edge: Small companies in your area may be tomorrow's giants
- Growth at Reasonable Price (GARP): Don't overpay even for growth
- Story Investing: Understand the company's narrative
- Tenbaggers: Look for companies that can grow 10x
💡 Did You Know?
Lynch discovered Dunkin' Donuts by eating their donuts. He found The Body Shop from his daughters' enthusiasm. He called this "investing in what you know."
📊 Analyze Any Stock
Enter a ticker symbol to see how it measures up against Lynch's criteria
Try: CMG, LULU, AMD, NVDA, or any US stock ticker
Example Results
Companies matching Lynch's criteria (for educational purposes only)
| Company | Ticker | Growth | PEG | Debt/Eq | Story |
|---|---|---|---|---|---|
| Chipotle Fast casual dining |
CMG | 24% | 1.3 | 0.0 | Quality food, expansion |
| Lululemon Athletic apparel |
LULU | 28% | 1.4 | 0.1 | Athleisure leader |
| AMD Semiconductors |
AMD | 32% | 2.1 | 0.05 | AI chip demand |
| Roblox Gaming platform |
RBLX | 35% | 1.2 | 0.0 | Metaverse growth |
Deep Dive: Understanding Lynch's Criteria
📈 Growth at Reasonable Price (GARP)
Lynch's signature approach balances growth potential with valuation discipline:
- The PEG Ratio: Lynch popularized PEG (P/E divided by growth rate)
- Sweet Spot: PEG under 1.5 means you're not overpaying for growth
- Why It Works: High growth is great, but not at any price
- Example: A stock with 20% growth and P/E of 25 has PEG of 1.25
- Avoid: Hot stocks with PEG ratios above 2-3
🚀 The Tenbagger Concept
Lynch coined "tenbagger" for stocks that grow 10x your investment:
- Small is Beautiful: Tenbaggers often start as small companies
- Timeframe: Usually takes 5-10 years for a company to 10x
- Characteristics: Growing markets, expanding locations, loyal customers
- Patience Required: You need to hold through volatility
- Home Runs: Magellan Fund had hundreds of tenbaggers
🧠 Invest in What You Know
Lynch believed everyday experiences give retail investors an edge:
- Your Shopping: Notice which stores are always busy
- Your Job: Industry insights others don't have
- Your Hobbies: Trends in gaming, fitness, or tech
- Your Kids: What products are they obsessed with?
- Key Rule: Only invest when you understand the business