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The Peter Lynch School Of Investing Essay

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The Peter Lynch School of Investing Had one invested a thousand dollars in Fidelity’s Magellan Fund on June, 1977 and gone into coma for 13 years, he would have found his investment turning into $28,000. Very few (probably Templeton followers) would disagree if one were to choose Peter Lynch as the greatest fund manager. He orchestrated growth of the asset base from $18 million to $14,000 million making it the largest in the world. Like Warren Buffet and Benjamin Graham, he did not use charts or technical analysis to achieve stunning record. His focus was on fundamental analysis and observations in day to day life. He thinks one doesn’t need to be genius to be successful investor. Fortunately for us, he has shared his investment philosophy in books ‘One Up on Wall Street’ and ‘Beating the Street’. There is no better book to get started for beginners than ‘One up on Wall Street’. Surprisingly, this book is high on stories and low on number crunching. His common sense approach and easy to understand writing style has been well received by investors all over, which is why it’s bestseller book. Lynch offers three questions that you need to ask yourself before buying any stock: 1) Do I own a house? 2) Do I need the money? 3) Do I have the personal qualities required to be successful investor? Responses of above questions would decide if stock is a good investment vehicle for you or not. Stocks are relatively predictable over ten or twenty years but it is difficult to

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