Beating the Market Is Easy if You Know This One Trick

Beating the Market Is Easy if You Know This One Trick

Peter Lynch is one the greatest money managers of all time.

Between 1977 and his retirement in 1990, his Fidelity Magellan Fund averaged 29% annual gains. That’s a compound gain of 2,640% over 13 years – which would turn every $10,000 into $274,000.

That’s more than double the gains of the S&P 500 over the same period, making it the best-performing mutual fund in the world.

The best part about his fund was that there was no barrier to entry. It was open to all investors – large and small.

All you had to do was buy his fund… Go about your life… And you would’ve made 27x your money.

With a track record like that, I can’t blame you if you thought the average investor made a fortune by buying Lynch’s fund.

But you would have been dead wrong.

The average Fidelity Magellan investor actually lost money.

While the Magellan fund averaged 29% annually, it still experienced volatility throughout the year. One month it might have been up 5%, and another month it might have been down 12%.

“Investors” (I use the term loosely) would panic-sell the bottom and panic-buy the top.

That’s why even when they had access to one of the greatest wealth managers of our time, they still lost money.

Here’s why I’m telling you about Peter Lynch…

Over the last eight years, I have absolutely crushed the average stock market returns. Some of my biggest stock winners include Nvidia in 2015, Tesla in 2019, and Broadcom in 2021.

Since I recommended them, they have appreciated as much as 16,632%, 2,607% and 397%, respectively.

In crypto, I’ve done even better. I’ve recommended 28 coins that have risen over 1,000%, including some rising as much as 150,000%, 54,000%, and 28,000%.

In this essay, I’ll explain why most investors fail at making money over the long term. And the one trait you need to develop to overcome this mistake.

The One Trait You Need: Forgetfulness