Global Courant 2023-04-26 06:24:59
Legendary investor Peter Lynch has one of the best investing records to his name, but he still regrets not buying into some of the biggest tech companies in recent years.
The former Fidelity Magellan fund manager revealed Tuesday that he wished he could see the explosive growth of Apple.
“Apple wasn’t that hard to understand. I mean, how stupid was I?” Lynch, Vice Chairman of Fidelity Management & Research, said on CNBC’s “Squawk Box.” Apple has a “nice balance sheet. I should have done some work on Apple … it’s not a complicated business.”
Lynch told how his daughter bought an iPod for $250 at the time and how he remembered thinking Apple made a big margin on it. However, he did not buy the stock.
Peter Lynch (L), Fidelity Funds Advisory Board Member.
Peter Lynch (L), Vice President of Fidelity Management and Research Co
Lynch, 79, acknowledged that Warren Buffett saw and capitalized on Apple’s potential. The “Oracle of Omaha” shunned tech stocks for decades, claiming they were outside of its expertise. But under the influence of his investing lieutenants, he bought Apple in 2016 and made it the largest holding in his portfolio.
Stock Chart IconStock Chart Icon
Apple stock – long term
The tech giant turned out to be one of the most successful bets of Buffett’s career, making him more than $100 billion on paper in just a few short years. Buffett still views Apple as a consumer products company because of its loyal customer base and strong brand effect.
Unlike Apple, Lynch expressed regret for not buying into the chip giant Nvidiaone of the biggest gainers in the semiconductor space in recent years and a major driver of artificial intelligence.
“Nvidia has been a huge stock, I wish I could pronounce it,” Lynch joked.
Stock Chart IconStock Chart Icon
Nvidia long term
Lynch made his name as manager of Fidelity’s Magellan Fund from 1977 to 1990. Under his 13-year management, the fund earned an annualized return of 29.2%, consistently more than doubling the performance of the S&P 500. During his tenure, he also increased Magellan’s assets under management from $20 million to $14 billion.
Lynch’s excellent track record made him a renowned figure on Wall Street, who went on to write investment books, including “One Up on Wall Street.”
