Why Peter Lynch Would Love Airbnb
Peter Lynch is an incredibly successful investor. From 1977 to 1990, Lynch led Fidelity's Magellan Fund, generating an average annual return of 29.2%, more than double the return of the S&P 500 during that time.
Lynch, who is also known for his books One Up on Wall Street and Beating The Street, argued that individual investors should buy what they know, and that some of the best investing ideas can be found in the supermarket or through conversations with friends. He started with such observations before doing fundamental analysis, in order to make sure the story made sense.
Additionally, he's credited with inventing the PEG ratio, which measures the price-to-earnings ratio in relation to earnings growth.
Source Fool.com
