Mantras from gurus can’t replace hard work

Some successful fund managers would have you believe making money from the markets is easy. But as Tim Bennett explains, there's no substitute for doing your homework.

One piece of investment advice that most of us have probably heard is US investor Peter Lynch's mantra that you should "invest in what you know". Lynch was one of the greatest investment managers of all time, as Carl Richards notes in The New York Times.

He made compound annual returns of 29.2% over the 13 years from 1977 to 1990, running Fidelity's Magellan Fund, while the S&P 500 returned 15.8% a year over the same time period. But, as Richards points out, you should take this particular piece of advice with a pinch of salt.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.