April 20, 2016
Diworseification
By Jim Tune Peter Lynch is a legend on Wall Street. As the manager of Fidelity Investments” Magellan Fund between 1977 and 1990, Lynch averaged a 29.2 percent annual return. His fund consistently doubled and even tripled the S&P 500 index. He did this without the help of complicated algorithms or insider trading. Lynch takes a commonsense approach to portfolio management. His most famous investment principle is simply, “Invest in what you know.” In his best-selling book One Up on Wall Street, Lynch devotes a chapter to listing the kinds of companies he stays away from. He cautions readers to
