Peter Lynch’s niche investing

Peter Lynch is a well-known investor who ran the Fidelity’s Magellan Fund. Over a 13-year period (May 1977 to May 1990), his rate of return was a whooping 29.2% per annum! How did he managed to do it? He, too, had a certain framework that is very similar to the one I posted a few days ago.

Peter Lynch’s framework is as follows:

From this, it can be seen that his style of investing is similar to Warren Buffett’s style of value investing. Most of the investing gurus have similar framework as it has been a tried-and-tested methodology and it has worked for them for the long-term. By modelling their framework and their mentality, we can at least achieve a small percentage of their returns.

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