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Saturday, March 7, 2009

Peter Lynch: I'm Confused




Peter Lynch, just after he retired from managing the Magellan Fund, as well as the legendary Warren Buffett, admitted that most investors would be better off in an index fund rather than investing in an actively managed equity mutual fund.
-- Burton Malkiel in A Random Walk Down Wall Street (p.144 in the 2007 edition)


Mr. Lynch said that even after this market decline, he would stick to the view that no one should hold stocks unless they could afford to lose an additional 50 percent. And he said he had not deviated from his faith in “bottom-down stock picking,” in which investors who have done their research buy shares of just five or six well-priced companies with strong balance sheets and “compelling stories.”


nyt march 7,2009

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