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."

Screener Criteria

Earnings Growth
> 20%
5-year average
PEG Ratio
< 1.5
Price/Earnings to Growth
Debt/Equity
< 0.5
Low leverage
Insider Ownership
> 5%
Management alignment
Market Cap
< $10B
Smaller companies

Example Results

Companies matching Lynch's criteria (for educational purposes only)

📚 Educational Data Updated: Delayed data for learning purposes
Company Ticker Growth PEG Cap Story
Chipotle
Fast casual dining
CMG 24% 1.3 $65B 🏆 Quality food, expansion
Lululemon
Athletic apparel
LULU 28% 1.4 $45B 💪 Athleisure trend leader
AMD
Semiconductors
AMD 32% 2.1 $220B 💻 AI chip demand