Investing legend Peter Lynch on the investments he regrets not making in recent years

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Legendary investor Peter Lynch on stock picking:

Legendary investor Peter Lynch has one of the best investment records under his belt, but he still regrets not buying into some of the biggest tech companies in recent years.

The former Fidelity Magellan fund manager revealed on Tuesday that he wishes he hadn’t missed out on the explosive growth Apple.

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“Apple wasn’t that hard to understand. I mean, how stupid was I?” Lynch, vice chairman of Fidelity Management & Research, said on CNBC’s “Squawk Box.” Apple has a “nice balance sheet. I should have done some work on Apple…it’s not a complicated company.”

Lynch recounted how his daughter had bought a $250 iPod back then and how he recalled Apple getting a good margin from it. But he didn’t buy the stock.

Peter Lynch (L), member of the Advisory Board of Fidelity Funds.

Peter Lynch (L), Vice Chairman of Fidelity Management and Research Co

Lynch, 79, acknowledged that Warren Buffett saw Apple’s potential and capitalized on it. The “Oracle of Omaha” had shied away from tech stocks for decades, claiming they were beyond his expertise. But under the influence of his investing lieutenants, he bought Apple in 2016, making it the largest single position in his portfolio.

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Apple stock – long term

The tech giant turned out to be one of the biggest bets of Buffett’s career, earning him more than $100 billion on paper in just a few years. Buffett still views Apple as a consumer goods company because of its loyal customer base and strong brand impact.

Away from Apple, Lynch expressed regret at not buying into the chip giant NVIDIAone of the biggest winners in semiconductors in recent years and a major enabler of artificial intelligence.

“Nvidia was a huge stock, wish I could pronounce it,” Lynch joked.

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Nvidia long term

Lynch made his name as manager of Fidelity’s Magellan Fund from 1977 to 1990. During his 13-year tenure, the fund has produced an annualized return of 29.2%, consistently more than doubling the performance of the S&P 500. During his tenure, he also increased Magellan’s assets under management from $20 million to $14 billion.

Lynch’s stellar record made him a well-known figure on Wall Street, who went on to write investment books, including One Up on Wall Street.

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