The amateur’s advantage

Lynch, who ran Fidelity’s Magellan Fund, argues that ordinary investors have real advantages over professionals. Fund managers face rules, committees and pressure to own what everyone else owns, while individuals can act freely and patiently.

Better still, everyday life is full of clues. You may notice a great product, a busy shop or a strong company in your own industry long before Wall Street does. Lynch describes finding winners this way, including through his wife’s enthusiasm for L’eggs pantyhose.