We take Peter Lynch’s road
28x$1,000 in Lynch’s Magellan Fund in 1977 was worth $28,000 by 1990
Growth is the real low risk. Lynch’s favourites were ‘small, aggressive new enterprises that grow at 20 to 25 percent a year’
Why it matters
Growth makes time work for you: a growing business is worth more each year, so paying too much is mended by time. Under Lynch, from 1977 to 1990, Magellan returned 29.2% a year.