Esteemed investor\u00a0Peter Lynch\u00a0has stated that he does not hold any artificial intelligence (AI) stocks, despite the sector\u2019s recent surge. Lynch, who is well-known for his successful stint at the\u00a0Fidelity Magellan Fund\u00a0during the 1980s, disclosed his views on a podcast.<\/p>\n
Last month, Lynch confessed during his appearance\u00a0on \u201cThe Compound and Friends\u201d\u00a0podcast that his portfolio does not include any AI stocks.<\/p>\n
“I have zero AI stocks. I literally couldn’t pronounce\u00a0Nvidia\u00a0until about eight months ago,” he said during the conversation<\/a>.<\/p>\n Lynch, who managed an average annual return of 29.2% during his 13-year tenure at Magellan, has been watching the AI surge from the periphery. He refrained from discussing his current portfolio or his preferred stocks, citing Fidelity\u2019s rules.<\/p>\n When questioned if investors have over-pursued the AI trade, Lynch responded that he had \u201cno idea.\u201d He underscored the significance of comprehending the companies one invests in, a concept he fervently promotes in\u00a0his book \u201cOne Up on\u00a0Wall Street.\u201d<\/p>\n Also Read: Peter Lynch\u2019s Investing Tip: If an 11-Year-Old Doesn\u2019t Get It, Maybe You Don\u2019t Either<\/a><\/p>\n He also admitted to having a limited understanding of technology, describing himself as the lowest tech guy. “I’m the lowest tech guy ever. I can’t do anything with computers. I just have yellow pads,” he said.<\/p>\n Lynch offered reassurance to employees worried about AI taking over their jobs, stating,\u00a0\u201cIt\u2019s a great country. We\u2019re\u00a0creative.\u201d<\/p>\n His remarks are timely, given warnings from executives at companies like\u00a0Walmart\u00a0and\u00a0Accenture\u00a0about AI\u2019s potential to significantly transform their workforces.<\/p>\n Lynch\u2019s stance on AI stocks is noteworthy given his successful track record as an investor. His lack of investment in the AI sector, despite its recent boom, could be indicative of his investment philosophy of understanding a company thoroughly before investing.<\/p>\n This approach, as he advocates in his book, could serve as a reminder to investors to not get carried away by the hype around a sector and to invest based on\u00a0a deep understanding of the\u00a0company and the industry.<\/p>\n Read Next<\/p>\n