Peter Lynch is one of the most successful investors of all time. A former Fidelity Fund manager and author of two bestsellers - 'One up on Wall Street' and 'Beating the Street'. These days, Lynch focuses a great deal of his time on philanthropic activities apart from working part-time as Vice-Chairman of Fidelity management and research co.

 

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Beating the StreetPeter Lynch - the investment maven became the poster boy for many when his Fidelity-managed 'Magellan' fund became the 5-star fund in the 80s. His methodologies of investing are still the most sought-after in many business schools and investment arenas, irrespective of the fact, that he retired way back in early 90s. To say that i got my hands on 'Beating the Street' after a lot of deliberation would be wrong. I bought it on pure impulse. After months of reading on personal finance, private-equiy, African poverty, etc; I wanted to read something to veer my mind in a different direction. While checking out books from outside a shop through a window, my eyes fell upon this paperback edition. And it didn't take a moment to rush in and grab it.

 

Now, I won't put this book in the same category as, perhaps,  Benjamin Graham's masterpiece - 'The Intelligent Investor'. For newbies and B-school students, it may prove to be quite enlightening. Stories about St Agnes school and the stockpicking methodology followed by its teahcers and students can induce a funny, feel-good factor. However, I am sure, in reality, neither Mr Lynch nor any of the seasoned stock-pickers would ever endorse such type of approach. Book gets bang on business when Lynch addresses the intricacies involved in retail businesses. His proclamation of parameters such as same-store sales increase, expansion plans, share of debt in capital, should be taken into account while evaluating retail stocks. Lynch also speaks in detail about his love for S&Ls and restaurant chains. The legendary fund manager has dedicated a full chapter- 'My Fannie Mae diary' - to his obsession with Federal National Mortgage Asscociation and how the stock went from a miniscule contibutor to the largest stock in his Magellan fund portfolio. In the nutshell, this book is more about 'Peter Lynch' and the stocks he admired. Accordingly, his strategies are also confined to the sectors he invested in most, for example, S&Ls and Retail.

 

If you have also read this book, of late, or are planning on reading it one of these days, there is a major unintended shortcoming. Many parts may sound outdated, for example, some of the companies mentioned in the book either no longer exist or have merged into others. If the non-contemporaneous nature of the book doesn't bother you, then go ahead and get this book. Some critiques have trashed 'Beating the Street' as a mere clone to Lynch's first book 'One up on Wall Street'. For those like me, who haven't read his first book, I think 'Beating the Street' would qualify as a feel-good read.

 

My opinion is that this book is not for serious investors/fund managers. Students, small-time investors and corporate newbies would definitely love this book. I would give it a 4 star rating, anytime.