"Wall Street Legend Peter Lynch's Regret: 'I Should Have Bought Apple Stock...'"

"Apple Is Not a Complex Company"
"Balance Sheet Is Important When Choosing Stocks"

Peter Lynch, a legendary investor on Wall Street in the U.S. financial world, expressed regret over not buying more shares of Apple.

On the 25th (local time), Lynch said in an interview with the U.S. 'CNBC' broadcast, "I still regret not buying some of the biggest tech companies in recent years," emphasizing, "Apple has a great balance sheet."

He blamed himself, saying, "Apple is not a very complicated company, but I didn't research it more." Lynch mentioned that his daughter bought a $250 iPod and he knew how Apple was making high profits through its products, yet he said, "I did not buy that stock." This is interpreted as referring to Apple's premium strategy and the high loyalty of its consumers.

Apple logo [Image source=Reuters Yonhap News]

He also praised Warren Buffett, chairman of Berkshire Hathaway, for his investment insight. Lynch said, "Buffett saw Apple's potential and invested in it."

At one time, Buffett showed reluctance to invest in high-tech companies. His investment strategy is based on 'value investing' (investing in stocks trading below their fundamental value), and tech stocks, which often endure short-term operating losses to maintain high revenue growth rates, did not suit him.

However, Berkshire Hathaway, led by Buffett, is now a major shareholder in Apple. In the fourth quarter of last year alone, it purchased 20.8 million Apple shares worth about $3 billion and received $10.6 million in dividends.

Lynch also mentioned Nvidia, a graphics processing unit (GPU) design company, along with Apple. He said, "I also regret not buying Nvidia's stock."

Apple's flagship product iPhone 14

He emphasized, "The principles I had regarding stock purchases are still valid today," adding, "When looking for good investment targets, you should look for companies with growth potential over the next five years and try to find companies expected to have a performance turnaround."

He added, "Look at the company's balance sheet," saying, "Apple really has a good balance sheet."

Lynch pointed out, "The problem for many investors is a lack of knowledge about what they are buying," and criticized, "Investors seem to spend more time looking for cheap airfare or reading appliance reviews than studying to choose good stocks."

Meanwhile, Lynch took over the management of the Fidelity Magellan Fund in 1977 when its net assets were $18 million, and by his retirement in 1990, he had grown it into the largest U.S. fund with net assets of $1.4 billion. He recorded a cumulative return of 2703% and an average annual return of 29.2% over 13 years. He is also famous for his steadfast investment principles that emphasize value investing and corporate growth potential.

However, he suddenly announced his retirement in 1990, leaving Wall Street and becoming a 'legend,' citing that his wife was suffering from depression due to his neglect of family while being absorbed in work.

This content was produced with the assistance of AI translation services.