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Born:
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United
States in 1944 |
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Employer:
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Former
Fidelity fund manager, today he is
vice-chairman of Fidelity |
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Most
Famous For:
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When he
started managing the Fidelity Magellan Fund in 1978, it had assets of
$20 million. When he retired in 1990, it had assets of $14 billion.
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Less
Celebrated For:
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Some
people were none too pleased when Lynch, one of the greatest, retired at
the tender age of 46. |
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Quote:
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"Go for
a business that any idiot can run - because sooner or later, any idiot
probably is going to run it." |
Background:
Lynch is arguably the world's most famous mutual fund manager. Often
described as a chameleon, he adapted to whatever investment style worked at
the time (growth
vs. value).
He was one of the first to uncover hidden gems such as Dunkin' Donuts, Pier
1 Imports and Taco Bell. People began to criticize Lynch once his fund
surpassed $1 billion in assets in the early 1980s, but the fund rose to $13
billion less than seven years later. He admits to taking plenty of risks
while managing the Magellan Fund, but he never suffered a losing year.
According to Valueline, "a $10,000 investment into Magellan in 1978 and then
adding $100 per month, would add up to over $1 million, in 20 years!" While
at the helm of Magellan, Lynch achieved an average annual return of 29% a
year.
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