Peter Lynch Portfolio — Magellan Fund Strategy & GARP Investing | SniperIQ
Peter Lynch managed the Fidelity Magellan Fund from 1977 to 1990, achieving 29.2% annual returns and growing assets from
Frequently Asked Questions
What is Peter Lynch's PEG ratio and how do you use it?
Lynch invented the PEG (Price/Earnings to Growth) ratio: PE ratio divided by annual earnings growth rate. A PEG below 1.0 suggests a stock is potentially undervalued relative to its growth; above 2.0 is expensive. Example: a stock with PE of 20x growing 25% has a PEG of 0.8 — attractive GARP opportunity. A stock with PE of 30x growing 15% has a PEG of 2.0 — potentially expensive. Lynch preferred stocks with PEG below 1.0 with growth sustained for 3-5 years.
What did Peter Lynch mean by 'invest in what you know'?
Lynch believed individual investors have an edge over Wall Street by observing products and businesses in daily life before analysts discover them. Examples: noticing Dunkin' Donuts always has a line, or seeing L'eggs pantyhose dominating supermarkets in the 1970s — these were early signals of investable trends. He called companies you can discover before Wall Street 'ten-baggers'. The principle isn't to blindly buy companies you like — you still need to verify the business fundamentals — but familiarity with a product gives you a useful analytical starting point.
Track Peter Lynch's Portfolio on SniperIQ
See Peter Lynch's latest filings, position changes, and how SniperIQ AI aligns with Fidelity Investments (Magellan Fund)'s thesis.