Cryptocurrency vs. Stocks: Legendary investor Peter Lynch takes sides

• Peter Lynch reveals that he does not own any cryptocurrency.
• He sticks to his “buy what you know” investment strategy.
• Lynch regrets not investing in Apple and Nvidia in recent years.

Bitcoin has greatly outperformed stocks since the beginning of this year, but legendary investor Peter Lynch continues to favor the latter.

Lynch does not own any cryptocurrency

On Tuesday, the Vice Chairman of Fidelity Management & Research confirmed that he has no exposure to cryptocurrency.

Interestingly, Lynch is familiar with the technology that takes up the encryption space. However, today on CNBC’s Squawk Box he said:

I understand blockchain. I know how it works. But what is bitcoin, I have no idea. I do not own any bitcoin or ether.

Lynch is shying away from BTC even though he knows its total supply will be halved next year – an event that usually translates to a higher price.

Lynch sticks to “buy what you know”

Bitcoin has now fallen back to the $27,000 level but it is still above a key support level which indicates that the uptrend is still in place.

But for years, Peter Lynch of Fidelity has recommended that “investors buy what they know” — and for him, that means stocks. Explaining how to pick shares and when to withdraw from them, he said:

Look at the company, the balance sheet. What is the reason for high inventory? When companies go from bad to near-bad to good, stocks go up. When business gets great, get out.

Today Lynch regretted not investing in a number of large-cap technology companies in recent years, notably Apple Inc and Nvidia Corporation.