MyMoney Online, Personal Finance with Warren Ingram

8 tips from 'the greatest unit trust investor ever'

The greatest ever unit trust investor was Peter Lynch, according to personal finance expert (Galileo Capital) Warren Ingram.

Lynch managed the Fidelity Magellan fund (the world’s best-performing unit trust) from 1977 to 1990.

Over that time, he generated 29% per year - more than double the index!

pixabay.com

Last week, Lynch was interviewed about investing in choppy markets.

The Money Show’s Bruce Whitfield asked Ingram to discuss some of Lynch’s gems from the interview.

The most important vital organ for investing? A strong stomach!

Peter Lynch

Wisdom from Peter Lynch, best unit trust investor ever:

  • You need to simply believe that great businesses will navigate their way through economic turmoil.

  • “When” and “how” is not relevant – you just need to believe that great businesses will continue to thrive over the long term.

  • More people have lost money anticipating crashes than those who have lost money in a crash.

  • Lynch says he has no idea what the market will do in two years.

  • He lost more money than the stock market when markets crashed. It happened nine times in his 13 years as a fund manager, yet he still doubled the return of the market over that time.

  • He thinks Emerging Markets have been hammered over the last while and thinks they offer the best opportunities for investors.

  • He never worried about the economy when making investment decisions.

  • Don’t be too rigid in your investment decisions, opportunities present themselves across all sectors of the investment markets.

For more detail, listen to the interview in the audio below.

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