Why Peter Lynch Would Love Genuine Parts

There are worse things an investor could do than pick stocks Peter Lynch would love. Lynch was one of the greatest money managers of all time, taking Fidelity Magellan from $20 million to $13 billion in 13 years and averaging 29% annual returns over that period.

He published two books that laid out his investing philosophy, One Up on Wall Street and Beating the Street, which gave the average investor the tools he used to rack up his awe-inspiring returns. What they bared was that there was no arcane secret behind Lynch's success; it is rather something anyone can achieve.

In short, it comes down to three simple principles:

• Buy what you know.
• Do your due diligence.
• Hold on to your stocks for decades.

Here's why aftermarket auto parts retailer Genuine Parts (NYSE: GPC) answers the description of a stock Lynch would love.

Image source: Getty Images.

A business for all markets

Genuine Parts is an easy business to understand. It's best-known for its global chain of over 9,600 retail stores that primarily operate under the NAPA Auto Parts banner. This accounts for two-thirds of total revenue, but it also runs an industrial replacement parts and supplies business serving more than 107,000 customers in North America and the Australasia region.

In operation since 1928, Genuine Parts has been through all manner of business and economic cycles and survived the Great Depression, two World Wars, numerous political upheavals, recessions, and a global pandemic.