“One Up On Wall Street” by Peter Lynch
“The Prince” by Niccolo Machiavelli
Prepared by Edgard Hajjar and Jessica Haddad
Leadership course, MIB MBA program, NDU 2010
Leadership Reflection in Money Management
Peter Lynch, the famous Peter Lynch, is America’s number one money manager. He used to work (now retired) at Fidelity. His Magellan fund has outperformed, under Peter Lynch leadership, peers in the marketplace, from May 1977 till May 1990 when Lynch retired. He is one of America’s idols, one of America’s stars and investing veterans, among others like Warren Buffet and Georges Soros.
His book, One Up On Wall Street, does not actually talk directly about leadership. However, after reading it, I captured some essence of leadership, some traits that can make me a greater leader and at the same time a greater investor.
When you are in the money management business, the only way to reap the rewards is through willing and commitment to work hard to achieve great returns.
The author said it is all about decision making. Successful decisions under pressure are the virtue of any successful leader. What to invest in, where to put your money and when, all these questions are the leader’s challenge and his ticket to triumph. Sometimes a fund leader should be able to take crucial decisions based on incomplete knowledge. In the case of Fidelity, each decision will involve tens of millions of dollars or more!! Do your homework, and when you find an opportunity, seize it, that’s what leaders do.
Peter Lynch’s investment strategy is buy and hold. He believes in long term investing. His objective is to find a ten bagger, i.e. a stock with the potential to appreciate ten times over a period from five to fifteen years. To explain briefly his strategy I will quote Warren Buffet who said: “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” This is his...