Question 1

True or false: Peter Lynch's 'tenbagger' term is borrowed from baseball, referring to a stock that grows tenfold.

Accepted Answer

True. Lynch coined 'tenbagger' from baseball's 'extra-base hit,' meaning a stock that returns 1,000% or more.

Question 2

True or false: Lynch famously said, 'Invest in what you know,' encouraging people to buy stocks from their daily life.

Accepted Answer

True. This is his most famous mantra—he believed everyday experiences, like shopping or work, reveal great investment opportunities before Wall Street.

Question 3

True or false: Lynch never invested in any companies that he didn't personally visit or research.

Accepted Answer

False. While Lynch emphasized firsthand research, he also used analysts and public filings; he didn't visit every single company before investing.

Question 4

True or false: Lynch's Magellan Fund once held over 1,400 different stocks at the same time.

Accepted Answer

True. At its peak in the 1980s, Magellan owned nearly 1,400 stocks—an extreme diversification for a fund manager known for concentrated picks.

Question 5

True or false: Lynch managed the Magellan Fund for 13 years, averaging a 29.2% annual return.

Accepted Answer

True. From 1977 to 1990, Lynch's Magellan Fund outperformed the S&P 500 every year, with a remarkable 29.2% average annual return.

Question 6

True or false: Lynch advised individual investors to avoid stocks with a P/E ratio above the industry average.

Accepted Answer

False. Lynch didn't rule out high P/E stocks; he focused on growth at a reasonable price (GARP) and used PEG ratios, not absolute P/E caps.

Question 7

True or false: During the 1987 crash, Lynch sold all his stocks before the market fell, preserving Magellan's gains.

Accepted Answer

False. Lynch did not predict the 1987 crash; he held through it and even bought more stocks during the downturn, which paid off later.

Question 8

True or false: Lynch wrote 'One Up On Wall Street' after retiring at age 46 to manage his own portfolio.

Accepted Answer

True. Lynch retired in 1990 at 46, then wrote the bestselling 'One Up On Wall Street' in 1989, sharing his investment philosophy.

Peter Lynch Trivia Questions