Beating the Street

Peter Lynch, who managed the Fidelity Magellan Fund, builds on his earlier One Up on Wall Street with case studies from his years running it. Written with John Rothchild, the book shows retail investors how to pick stocks and mutual funds and assemble a portfolio, combining knowledge from everyday life with fundamental analysis. Lynch illustrates his principles with successful and unsuccessful investments: put money into companies one understands, do independent research rather than follow the market or the economy, look for growth at a reasonable price, and be patient for the long term. His view is that a disciplined individual can beat professional fund managers. It came out in 1993.

Mohnish Pabrai strongly recommends all of Peter Lynch's books, singling out this one along with One Up on Wall Street.