Peter Lynch is a name that resonates in the investment world even more than thirty years after his retirement. The legendary manager of the Magellan Fund at Fidelity Investments achieved an average annual return of 29.2% during his tenure from 1977 to 1990, nearly doubling the performance of the S&P 500 Index. His success not only propelled him to the top of the investment world, but also made him one of the most quoted investors of all time. What was his magic and what principles did he use to achieve such phenomenal results?

Peter Lynch and his approach to investing. Lynch believed that even the average investor could find great opportunities if they used their everyday experience and knowledge. In his view, it was possible to get a leg up on professional analysts by spotting a popular new product or growing business before the rest of the market discovered it.

However, as Lynch points out, personal intuition is only a starting point. Any investment must be backed by a thorough…