May 18, 2017 01:21 PM

Peter Lynch: the market chameleon

Dear Traders,

Despite the fact that there has always been plenty of successful investors, only very few of them can be called legends, and Peter Lynch is on top of that list.

He was born in the 1940s in Newton, Massachusetts, and from the age of 7, there was only his mother to support him and rely on. Being a sophomore at Boston College, Lynch bought his first 100 shares of Flying Tiger Airlines ($8 for each one) and that was the start of his future in the financial world.

Mostly Peter Lynch is known for his work at the Fidelity Magellan Fund in 1970-1990s. Under his leadership, Magellan Fund reached the annual average return of 29% and increasing the fund’s assets from $20 million up to the unbelievable $14 billion. Do you want to know what stands behind his success?

Every good trader usually has his own trading style, the one that makes him different from the others. However, Lynch can easily be called one of the kind multi-strategist or "chameleon", because he prefers to adapt to different situations and choose the best strategy basing on the existing circumstances.

His desire to work and its results have always been a motivation for traders of all age. Lynch developed a unique set of rules, which can be a roadmap for every trader:

  1. Know what you own.

  2. It's futile to predict the economy and interest rates.

  3. You have plenty of time to identify and recognise exceptional companies.

  4. Avoid long shots.

  5. Good management is very important - buy good businesses.

  6. Be flexible and humble, and learn from mistakes.

  7. Before you make a purchase, you should be able to explain why you're buying.

  8. There's always something to worry about.

There are plenty of trading secrets that Peter Lynch can share with you and the majority of them can be found in his 3 famous books “One Up on Wall Street”, “Beating the Street” and “Learn to Earn” and many articles that he had written over the years.

If you are still new to the investment world and looking for the teacher, Peter Lynch can be the best choice. What makes him really different from the other financial gurus is simplicity and the way he sees it. “Invest in what you know” is actually his most important mantra and really, what can be easier than to work with what you know the best.

Start your own success story with us!

Sincerely yours,

Ayrex Team.