Peter Lynch, a 78-year-old investment guru, is still tirelessly “turning the stone.”

On May 18, the former Fidelity Magellan fund manager acquired a 5.2% stake in alternative healthcare provider Imac Holdings Inc., according to his latest 13G filing with the Securities and Exchange Commission, giving the legendary investor an investment. A rare combination.

After the news was disclosed, the company’s share price soared more than 20% in midday trading that day, while IMAC’s share price was only 85 cents per share.

The next day, the company’s stock rose another 22%, and as of May 27, the stock had risen to $1.15.

Lynch said in an interview that he tried to avoid owning more than 5% of a particular stock, but he didn’t realize his $1.2 million stake put him above that threshold, asking him to disclose it in a Wednesday filing.

Lynch said he likes small-cap stocks because “they’re less sought-after,” but declined to discuss his reasons for investing in IMAC.

What kind of company is IMAC?

IMAC is a Brentwood, Tennessee-based company founded in 2015 that operates 15 outpatient clinics across the United States. These clinics offer sports medicine treatments with a focus on regenerative, orthopedic and minimally invasive surgery.

The company went public in February 2019, but its share price has not performed well since, falling 73% since its IPO.

The short interest rate on the company’s stock fell sharply in April, totaling just 261,200 shares as of April 30. That’s down 29.6 percent from April 15.

In terms of business model, it is a company that provides conservative medical services, combining advances in life sciences with traditional medical services, mainly dedicated to helping professional athletes recover from injuries.

The company is focused on “treating sports and orthopaedic injuries and diseases that limit movement without surgery or opioids.”

Provides exercise, orthopaedic and neurological treatments through its chain of Innovative Medical Advancement and Care (IMAC) Regenerative Centers.

The company’s outpatient clinic provides conservative, non-invasive medical services to help patients with back pain, knee pain, arthralgia, ligament and tendon injuries, and other related soft tissue disorders.

Its BackSpace retail spine health and wellness treatment center offers chiropractic care at Walmart locations.

The company is also conducting a Phase I clinical trial evaluating bone marrow-derived mesenchymal stem cells as a candidate for the treatment of Parkinson’s disease-induced bradykinesia.

It has offices in six states, operates about 17 outpatient clinics, and operates four BackSpace clinics in two U.S. states.

At the same time, the company works with athletes and coaches, and some of the company’s regeneration centers are named after professional athletes, including baseball player David Price and footballer-turned-coach Mike Ditka.

Peter Lynch still loves small caps!

Although the company’s share price surged after the news, investors were also reminded that IMAC is a lightly traded stock that has struggled since its listing, and Lynch’s investment is no guarantee that IMAC’s share price will improve. .

Today, Lynch still maintains one of the best track records, delivering a staggering 29% annualized return from 1977 to 1990, nearly double the return of the S&P 500 over the same period.

In 1990, the 46-year-old investment guru retired early and left the public eye, but has been active in the investment front line of Fidelity.

His most recent public appearance was in an interview with Barron’s in late 2019, when Lynch mentioned that he remains bullish on growth stocks.

It’s hard to see his holdings at the moment, and this time it’s also because of Lynch’s own “little mistake” that we got a glimpse of his investment in the company.

As you can see from this investment, Peter Lynch still loves small-cap stocks today.

In fact, there are also many domestic investors who have set their sights on small and medium-sized stocks.

Dong Chengfei, a Ruijun asset who just ran away, said in a public roadshow in May that he would focus on companies with small market capitalization, because there are current macro uncertainties, and small market capitalization companies may be far from the macro. will be further away.

Of course, he also emphasized that there must be careful selection.

Qiu Dongrong of Zhonggeng Fund also said before that the broader field of small and medium market capitalization is a systematic opportunity at present. On the one hand, there are traditional growth industries and companies, including computers, auto parts, and new energy vehicle industry chains. Small companies, even some high-end manufacturing companies; on the other hand, manufacturing, especially traditional manufacturing.

Peter Lynch is known for his investments in growth stocks. His insights on growth stocks still apply today when we look at many small and mid-cap growth companies.

Smart Investors have compiled 32 classic golden sentences from Peter Lynch about investing and revisit them together.

If you understand why you bought a stock in the first place, you know the right time to say goodbye to it

1. Throwing away good stocks that make money and holding bad stocks that lose money is tantamount to pulling out flowers and watering weeds.

2. Sell the losing stocks and let the winning stocks run for a while longer.

3. As long as the earnings of the fast-growing companies continue to grow, the scale continues to expand, and there are no obstacles to the company’s growth, I will continue to own the stocks of these fast-growing companies.

4. The selling technique of fast-growing stocks is not to sell too early and miss a big bull stock that will rise 10 times in the future.

5. If you understand why you bought a stock in the first place, you know a reasonable time to say goodbye to it.

6. Patience is a virtue, but if you hold stocks that are no longer in their prime, your patience may not be rewarded in the end.

Words like “This kid will definitely grow up” are unreliable

7. Do your research and analysis when choosing a new stock, at least as much time and effort as you choose a new refrigerator.

8. You have to know what you are buying and why you are buying it. Sayings like “This kid will grow up” are not reliable.

9. It is almost impossible to find a big bull in a calm and pleasant environment, just like a detective sitting on the sofa trying to find clues to solve a case.

10. Looking for a good stock worth investing in is like looking for a bug under a rock. If you turn over ten rocks, you may only find one.

If you look at 10 companies, you might find one interesting stock, if you look at 20, you might find 2, and if you look at 100, you might find 10. The person who examines the most companies will win the investment game.

11. Holding stocks is like raising children, don’t go beyond what you can do. An amateur investor can probably track 8-12 companies, but don’t own more than 5 stocks at the same time.

The “any fool can run this business” company is my dream

12. If the only reason you’re buying a stock is because you think its price is going to go up, then you shouldn’t be buying it.

13. “Any fool can run this business” is a characteristic of the ideal company, and the stock of this kind of company is exactly what I’ve dreamed of.

14. The best time to buy is when analysts are bored.

15. Look for small companies that are already profitable and that have proven they can replicate their business ideas and succeed elsewhere.

16. Avoid hot stocks in hot sectors. The best companies have bad times, and there are big winners in industries with stagnant growth.

17. Don’t believe in diversification. It turns out that diversification often leads to the deterioration of the company’s operating conditions.

18. Investment ventures that promise huge returns if successful but have only a small chance of success almost never work out.

19. When people call a certain stock second, it shows that not only the “second second” stock will be out of stock, but that such and such stock will also be a thing of the past.

The stock market crash is actually a good thing

20. If you can’t convince yourself of the true belief of “I’ll buy when my stock falls 25%” and the devastating false belief of “I’ll sell when my stock falls 25%”, then you It is never possible to get any decent returns from investing in stocks.

21. The stock market crash is actually a good thing, giving us another good opportunity to buy those very good company stocks at a very low price.

22. Sophisticated stock pickers have the same relationship with falling stock markets as Minnesota residents have with cold weather. You know that a stock market crash will always happen, and you are prepared for it to survive the crash.

23. When 10 people would rather talk to a dentist about treating plaque than a mutual fund manager about stocks, there’s a good chance the stock market is about to bounce back.

24. While trying to avoid the bear market by timing, you often miss the opportunity to dance with the bull market.

Buying stocks that are falling is like picking up flying knives

25. It’s always darkest before dawn, but sometimes it’s always darkest before it finally gets dark.

26. Wanting to buy a falling stock is like trying to catch a falling knife. Generally speaking, a safer way is to wait for the knife to fall to the ground, plunge into the ground, dangling for a while and then stop moving, and then grab the knife and do not retreat.

27. If you’re interested in distress reversal stocks, you should find a stronger reason to buy than if the stock has fallen so much that it looks like it might bounce back.

28. The best time to sell a distress reversal stock is after the company has successfully turned the corner, all the difficulties have been resolved, and every investor knows that the company has made a comeback.

29. The trick to investing is not to learn to trust your inner feelings, but to restrain yourself from ignoring your inner feelings.

30. Thinking that once you win, you will make a lot of money, so you make a big bet, and the result is often a big loss.

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