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Great article by Peter Lynch


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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

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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

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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.

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" 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.

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" 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

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" 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.

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" 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. 

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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.

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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. "

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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.

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