What is Peter Lynch net worth?
Peter Lynch is an American investor and mutual fund manager who has a net worth of $450 million. In 2006, Peter net worth was estimated at $352 million. That was enough to place him at number 33 in the list of Boston’s richest residents, according to Boston Magazine. He has donated tens of millions of dollars, possibly as much as $100 million, to various charities.
As director of the Magellan Fidelity Investment Fund between 1977 and 1990, Peter generated an unprecedented average annual return of 29.2%. During its tenure, the fund achieved record growth and became the best mutual fund on the planet. Under Peter, assets under management increased from $18 million to $14 billion. Peter Lynch has co-authored several books and papers on investing. Come up with the phrases “ten bagger” and “invest in what you know.”
Early life and education
Peter Lynch was born on January 19, 1944 in Newton, Massachusetts. His father died early in his life and he was left to be raised by his mother. To help support the family, Lynch worked as a teenage can. For his higher education, he went to Boston College, and paid for his tuition by making profits from his purchase of Flying Tiger shares. After graduating in 1965, Lynch received an MBA from The Wharton School of the University of Pennsylvania.
Career Beginnings at Fidelity
In 1966, Lynch became an intern at Fidelity Investments. Previously, he carried a briefcase for the company’s president, Dr. George Sullivan, a connection that helped him get the party going. Initially, Lynch dealt with the paper, publishing, and chemical industries for Fidelity. Then he took a two-year leave of absence to serve in the army. Upon his return in 1969, Lynch was appointed permanently to Fidelity. As an employee, he was assigned to pursue the mining, textile and metallurgical industries. From 1974 to 1977, Lynch was director of research at Fidelity.
Fidelity Magellan Fund
Lynch began his biggest venture in 1977 when he became president of the Magellan Fund, a mutual fund that at the time had only $18 million in assets. Over his 13 years as director of the Magellan Fund until 1990, the fund grew to over $14 billion in assets with over 1,000 individual stocks. Furthermore, the Magellan Fund averaged 29.2% annually, becoming one of the best performing mutual funds in the world. Lynch was able to achieve this record growth in large part because he took over the management of the fund when he was still young, and thus had few restrictions on the assets he could buy. His focus was on individual companies, starting with large US companies and gradually shifting to international and smaller stocks. Lynch has had success in a wide range of stocks from various industries. Ford, General Electric, Louise, Kimber, Fannie Mae and Volvo were among his most profitable picks.
Books and articles
Lynch has written or co-authored numerous books and articles on investment strategies. With John Rothschild he co-authored “One Up on Wall Street”, “Beating the Street” and “Learn to Earn”. The previous title, which has sold over a million copies, focuses on investment techniques related to stock ratings and portfolio design, among other topics. Lynch has also written a series of articles on investing for Worth Magazine.
investment philosophy
Lynch’s investment philosophy has become among the most popular in modern finance. He is particularly known for his motto “Invest in what you know”, which was founded on the economic concept of local knowledge. Lynch also coined the term “ten bigger,” referring to an investment equal to ten times the original purchase price. Meanwhile, he helped promote a stock investing strategy known as GARP, or “grow at a reasonable price,” a hybrid approach that balances growth and investment potential to drive up stock prices with the discipline of value investing to avoid overvalued stocks. The GARP model is used by many major funds.
(Photo by James Schnepf/Liaison)
charity
While serving as Vice President of Fidelity Management & Research, the advisory arm of Fidelity Investments, Lynch spent most of his time mentoring nascent young analysts. He also devotes a great deal of his time to various charitable endeavors. Through his and his wife’s Lynch Foundation, which widely supports organizations in the education, health, and cultural fields, he has provided grants worth millions of dollars. He also donated money as an individual, including to his alma mater at Boston College. Other projects Lynch supports include the New Year’s Eve Cultural Celebration First Night; AmeriCares Global Health and Development Organization; and the nonprofit City Year and Teach For America.
personal life
In 1968, Lynch married his wife, Caroline Huff, with whom he had three daughters, Mary, Annie, and Elizabeth. The couple co-founded the Lynch Foundation. They remained together until Hoff died of leukemia in 2015.
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