One Up On Wall Street
by Peter Lynch with John Rothchild, published 1989
Peter Lynch was the portfolio manager of the Fidelity Magellan Fund from May 1977 to May 1990 – a period which the fund rose an astounding 28-fold per share – giving it the title of the best-performing mutual fund in the world at the time. First published in 1989, Lynch makes a case that the average investor has a good chance of beating the typical mutual fund manager over a sustained period – by utilizing his or her common sense and with buying stocks that some of the professionals cannot or would not buy (for example, buying shares in a small cap company – companies which larger mutual funds would not bother with). Peter Lynch also outlines his strategy for buying all kinds of stocks – such as growth, cyclical, and potential turnaround situations – with a special emphasis on discipline such as rechecking your stocks every few months and not panicking when everyone else is selling.
Beating the Street
by Peter Lynch with John Rothchild, published 1993
Peter Lynch continues his huge success by authoring his second investing book – written after his abrupt departure from Fidelity on May 31, 1990. First published in 1993, this book touts the same message as the first one – that the average retail investor can beat the professional money managers at their own game if they invest the necessary time and effort in researching stocks and if they exercise enough common sense and discipline. As well as the many examples Peter Lynch gives along the way, he also traces his money-managing career at Fidelity – from a lowly start of $18 million (with an amazingly high $50 million tax-loss carryforward) in 1977 to $14 billion in assets when Peter Lynch retired in 1990. Lynch closes the book out with his set of “25 Golden Rules” – which should be required reading for all investors – professional or not.