Magellan Fund investors earned much lower returns than the fund itself, George Noble notes

Magellan Fund investors earned much lower returns than the fund itself, George Noble notes
Magellan Fund investor returns lagged performance

Peter Lynch’s Magellan Fund delivered an average annual return of 29% over 12 years. However, the average investor in the fund made only 7%, according to George Noble. Noble attributed this difference to investors buying after gains and selling after declines, suggesting that the fund’s performance itself was not to blame.

Noble has previously commented on company performance, saying he advised selling OPEN at 8 a year ago and noted the reactions he received at that time in a prior statement. He also highlighted that the energy sector is projected to contribute 20% of total S&P 500 shareholder payouts despite its relatively small index weight, according to a recent note. These remarks add to Noble’s observations on investor behavior and sector developments.

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