Rescue Magellan

Founded in the early 1960s the Magellan Fund in惨淡经营the first 10 years on the face of the United States stock market crash, the United States was the largest ever stock market crash, a sinking almost Magellan - the total amount of funds from the company's founders, 20 million drastic shrinkage to the District 6 million. Therefore, boarded a small boat Magellan set off a storm like Peter Lynch is a power and tremendous captain, he was placed挽狂澜in with the high expectations of dumping heavy responsibility.

We have encountered serious redemption, Lynch had reluctantly closed the Magellan Fund of the measures taken, and lasted for four years. Despite finally fell incessantly, but even a Lynch seems to be so much easier. In this four-year closure period, Lynch forced himself to a kind of rigorous training - all walks of life visited the familiar, and the record in detail about each company or lead to the success or failure of the industry factors and continuously through the media Transfer to a future Magellan investor confidence.

Lynch used in the Magellan was a move is the most powerful high换手率. It was done such statistics, as in the Lynch fund managers in the first year, Magellan investment换手率is 343%, that is, an ordinary working day, Lynch about to buy 50 million US dollars, sold at the same time 50 million US dollars, that is to say, he sold 100 shares per day, but also buy 100 kinds of shares, even after three years of换手率remained at 300 percent. Of course, such a high换手率for Lynch This is indeed had to do this. In his own words, he not only is their choice to replace former stock shares, but also will pay investors realized the stock redemption request. In fact, to change hands dazzling Lynch has left many to regret. He sold many shares after a strong trend, in its place, but it falls short of new shares, and he often mocked himself "uprooted flowers, watering weeds." Unexpectedly, his famous quote this sentence described it, and one day actually received at Buffett's phone number, allowing him to request the annual report to shareholders in the quoted phrase.

But let extremely pleased to Lynch, four years on new customers for the closure period Magellan has finally won the chance to recuperate. Closed end of the first year,麦哲伦基amount to jump to 100 million US dollars, and start again to the public issue.

In order to avoid the United States continued downturn of domestic capital markets the negative impact of the closure period bear the pressure of a shortage of funds at the same time, Lynch腾挪a part of the funds quickly into the market abroad particularly in Europe, particularly in Belgium Bechtel • Have companies to invest in black the diving Magellan taste for the sea expedition to the first taste of the Arc de Triomphe and led to the scale of its funds have been drastically inflated.

• Lynch in the investigation Bechtel Corporation and the process is hereby found, supermarkets lion food as much as 25% of the shares are held in Beadle • Have company in the hands of black, and the lion share of the food was already far beyond Bechtel • Have the company's shares black. A rare opportunity to Lynch landed before. He began buying large black Del • Have company's stock, Bechtel • Have company and a share from 30 a share, up to 120 dollars, the Magellan to receive several times revenue.

In the next 10 years, Lynch Magellan Fund will send peak position. According to Lynch later recalled, from Magellan Fund re-opened to the public after 10 years, its annual average growth rate of nearly 30%, fund management assets expansion to 14 billion US dollars, the company's original investment quotas only on the table 40 kinds of shares increased to 1,400 kinds. The fund more than 1 million people and became Fidelity's flagship fund, and is the global asset management at that time the largest amount of funds, its investment performance is ranked first. Wall Street also out such an account, if someone in charge of Lynch as Magellan Fund in the first year of investment 10,000 US dollars, then 13 after there will be 280,000 US dollars of huge returns, the results exceeded the Buffett and Soros two investment Masters earlier investment performance.

Lynch fabulous investment story in the Wall Street heroes gathered spread like wildfire. The United States "Time" magazine said Lynch is the world's "first family of financial management", "happiness" magazine praised him as "the area of investment shares the most successful - a super investment Fest," the United States will fund rating company assessed lichter "history's most legendary fund manager" and a Wall Street name is now remembered Peter. Lynch their titles - "stock angel."

Know when to go home

CHARLIE horseshoe urgency. According to the general understanding of logic, but of success for flowers and will be escorted by the Lynch are no mounted troops on. However, entered the 46-year-old, Lynch made to the company resigned from the Fidelity Magellan fund manager of the applications.

高处不胜寒. Most allow Lynch to急流勇退decision he probably still operating in the capital to withstand the tremendous psychological pressure. Yes, Lynch will Magellan from a tiny "Fund Junk" made the fight a "fund aircraft carrier", and the successful stimulus and欢娱, but may be encountered at the same time keeps the torment and torture sinking .

According to Lynch's statistics, the United States stock market in its Magellan fund managers as the 13 occurred nine different degrees of adjustment, each of the adjustments, the Magellan Fund's share holdings, it was down more than the market index decreases, when the rebound the gains than the market average or larger. As a "capital appreciation fund," Magellan, like other high-return stocks, also showed wide shocks characteristics. Especially in the 1980s in the latter part of the market adjustment, the rapid growth of Magellan Fund first setback, although Lynch had already sold dozens related company shares, but he subsequently bought other stocks but not leave enough cash As a result, after two months had to sell 689 million US dollars stock fulfill 1.3 billion US dollars of redemptions, the day of the fund net asset value losses 18%, losses amounted to 2 billion US dollars.

Of course, Peter. Lynch is not a fear of failure, otherwise he would not take over from the former Like a chicken feathers to the Magellan. But that does not preclude Lynch faced by ordinary people as a career pressure. In 13 of the fund manager career, the size of Magellan Fund and the rapid expansion of the media constantly questioned, which are always encouraging him to challenge limits; but also nobody knows and is continuing to create a fund simultaneous increase in performance and scale new record Behind Lynch paid by the high price - he must every Saturday overtime, the daily work more than 16 hours, or even to leave in order to facilitate the sale of the directive, fail to see the real life of their own private space.

Using the words of his wife Caroline, when Lynch in the Wharton School of Business and her date, only talking about two things, "stocks, the stock market there." Aftermaths lichter about the reasons for his departure, his explaining the same highly humane, he said, when he puzzled at a Hamlet-style question: "When wealth is your slave, the value depletion in the rest of their lives to it, or to let you accumulate wealth for your services?"

Lynch attracted many people the decision he made all kinds of after-service arrangements, but all of these are Lynch refused. And he is the only acceptable down to him Fidelity issued by the Board of Trustees as its first vice president of the invitation.