8 tips from Peter Lynch, the 'greatest unit trust investor ever'

The greatest unit trust investor ever was Peter Lynch, says personal finance expert (Galileo Capital) Warren Ingram (in an interview from our archives).

Lynch managed the Fidelity Magellan fund (the world’s best-performing unit trust) from 1977 to 1990.

Over that time, he generated 29% per year - more than double the index!

"The most important vital organ for investing? A strong stomach!"

- Peter Lynch

Wisdom from Lynch:

* You need to simply believe that great businesses will navigate their way through economic turmoil.

* “When” and “how” are irrelevant – you just need to believe that great businesses will continue to thrive over the long term.

* More people have lost money anticipating crashes than those who have lost money in a crash.

* Lynch says he has no idea what the market will do in two years.

* He lost more money than the stock market when markets crashed. It happened nine times in his 13 years as a fund manager, yet he still doubled market returns over that time.

* He never worried about the economy when making investment decisions.

* Don’t be too rigid in your investment decisions, opportunities present themselves across all sectors of the investment markets.

For more details, listen to the interview in the audio player below.