“I Have 10 Grandchildren”

No, not me, but Peter Lynch, who, in a conversation with Bloomberg News, as reported by the Los Angeles Times, when pressed on the record of active vs. passive management, said, “I don’t keep score, I’ve got 10 grandchildren…That’s what I keep score on.”

For those too young to remember, Peter Lynch, now 78, was renowned for his stock picking skills as the investment manager of Fidelity Magellan Fund, where he significantly outperformed the S&P 500 from 1977 to 1990.

Investors should consider that Lynch’s remarks were part of the continuing debate about which is better for investors, active or passive management.  This is a debate that may never be resolved and may not be all that important.  What investors should focus on is an organized and informed approach to portfolio management and a clear understanding about what really matters.  For those of us who are fortunate enough to have grandchildren, remember Peter Lynch’s philosophy.

 All comments and suggestions are welcome.

Walter J. Kirchberger, CFA