Peter Lynch

Perhaps the most successful mutual fund investor of all-time, Peter Lynch ran Fidelity Management’s Magellan Fund from 1977 until 1990, and achieved returns of 29.2% per annum. His investing strategy is clearly outlined in his book One Up On Wall Street and more recently Beating the Street, in which he writes specifically about the industries and companies in which he has invested.

When selecting a business in which to invest, Lynch is the first to say it should be a business that you understand and are familiar with. In addition and put more bluntly in his own words: “Go for a business that any idiot can run – because sooner or later, any idiot probably is going to run it.” The title of Eyes and Ears comes from the bottom-up approach of fundamentally understanding a business from its prospects to its competition to the reasonability of the price at which it can be purchased.

Based on his approach lynch divided the companies in 4 segments which are given below-