Peter Lynch
The Magellan Fund Legend
1977 - 1990
Invest in what you know. Find companies growing earnings 20-25% per year at reasonable valuations. Classify every stock by its growth profile - fast grower, stalwart, cyclical, turnaround, or asset play - then match valuation to category using the PEG ratio.
Investment Approach
- 1PEG ratio below 1.0 is the sweet spot - growth at a reasonable price
- 2Classifies stocks by growth profile to set expectations
- 3Loves underfollowed mid-caps with growth runways
- 4Checks stores, products, and industry trends in person
- 5Diversifies broadly but sizes positions by conviction
Selection Criteria
Criteria derived from Peter Lynch's published writings and investment principles.
Top 10 UK Equities - Peter Lynch Strategy
Ranked by Peter Lynch's GARP methodology. Stocks with strong earnings growth at reasonable valuations score highest.
| # | Ticker | Company | Sector | Mkt Cap | Category | Score | Verdict |
|---|---|---|---|---|---|---|---|
| 1 | FOUR | 4imprint Group PLC | Advertising | $1.7bn | Fast grower | 100.0 | BUY – GARP (PEG, growth, debt, no losses) |
| 2 | BALF | Balfour Beatty PLC | Construction & Engineering | $5.3bn | Fast grower | 99.6 | BUY – GARP (PEG, growth, debt, no losses) |
| 3 | PAFR | Pan African Resources PLC | Gold | $3.7bn | Cyclical | 99.3 | Watchlist |
| 4 | KIE | Kier Group PLC | Construction & Engineering | $1.7bn | Fast grower | 98.9 | Watchlist |
| 5 | BCG | Baltic Classifieds Group PLC | Interactive Media & Services | $1.1bn | Fast grower | 98.6 | Watchlist |
| 6 | CPG | Compass Group PLC | Restaurants | $52.7bn | Fast grower | 98.2 | Watchlist |
| 7 | VLX | Volex PLC | Electrical Components & Equipment | $1.6bn | Fast grower | 97.8 | Watchlist |
| 8 | EDV | Endeavour Mining plc | Gold | $13.2bn | Cyclical | 97.5 | Watchlist |
| 9 | INCH | Inchcape PLC | Distributors | $3.0bn | Fast grower | 97.1 | Watchlist |
| 10 | AZN | AstraZeneca PLC | Pharmaceuticals | $243.7bn | Fast grower | 96.8 | Watchlist |
4imprint Group PLC
Balfour Beatty PLC
Pan African Resources PLC
Kier Group PLC
Baltic Classifieds Group PLC
Compass Group PLC
Volex PLC
Endeavour Mining plc
Inchcape PLC
AstraZeneca PLC
Disclaimer
This page applies Peter Lynch's documented investment philosophy to UK-listed equities. Rankings and scores are illustrative and do not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.