About the Book
When it comes to investing, there aren’t many better than Peter Lynch.
As the former manager of Fidelity’s Magellan fund, he averaged a 29.2% annual return between 1977 and 1990. This means that at the time, it was the world’s best performing mutual fund. During his tenure, assets increased from $18 million to $14 billion.
But is he any good as a teacher?
You bet he is!
He explains things in an easy to understand fashion and doesn’t concern himself with any technical analysis. Packed full of gems, it’s the perfect starter for those wanting to find out more about what it takes to make money in the stock market, or even for more experienced investors looking to sharpen their tools.
It really is a great book!
- “I’m always amused when people describe their investments as ‘conservative speculations’ or else claim that they are ‘prudently speculating’. Usually this means that they hope they are investing but they’re worried that they’re gambling. The phrase ‘we’re seeing one another’ serves the same function for couples who can’t decide if they’re serious.” Chapter 3
- “In Mayan mythology, the universe was destroyed four times, and every time the Mayans learned a sad lesson and vowed to be better protected – but it was always for the previous menance… I don’t remember the fourth bad thing that happened – maybe a recession – but whatever it was, the Mayans were going to miss it. They were too busy building shelters for the next earthquake.” Chapter 5
- “By successfully rotating in and out of several stalwarts for modest gains, you can get the same result as you would with a single big winner: six 30-percent moves compounded equals a fourbagger plus, and six 25-percent moves compounded is nearly a fourbagger… If you can’t convince yourself ‘when I’m down 25 percent, I’m a buyer’ and banish the fatal thought ‘when I’m down 25 percent, I’m a seller,’ then you’ll never make a decent profit in stocks.” Chapter 16
What Others Are Saying About It
4/5: A really solid book with many useful takeaways. My only concern would be whether the speed of today’s markets mean the average investor can still be ‘one up on wall street’ through following Peter Lynch’s lessons. This is still well worth a read though for aspiring value investors.