Famed ex-Fidelity stock picker Peter Lynch speaks about market turmoil

As markets plunged in 2002 Fidelity Investments’ famed stock picker Peter Lynch appeared with then-Commerce Secretary Donald Evans in Boston and told the audience of small investors to bet on a long-term recovery. “I wouldn’t bet against America, we’ll get out of this one,’’ Lynch said at the time.

In an interview on Friday afternoon Lynch made essentially the same point. Even if in hindsight this turns out to be the eleventh recession in the US since World War II, Lynch said, strong companies will still earn their edge and pay off as long-term investments.

Lynch compared the current period to the retrenchment of 1990 and 1991, when many banks collapsed and lending froze up. “The surprising part is that unemployment hasn’t jumped’’ higher now as in previous downturns.

But only an investor willing to become very knowledgeable about companies and their industries should bother investing in individual stocks, he said. “The term ‘play the market’ has done so much damage’,’’ Lynch said. “The average person should know seven or eight companies really well, and own two or three of them. They should be able to give lectures about them.’’

Lynch’s advice is similar to tips he’s given in the past as the well-known former manager of Fidelity’s flagship Magellan mutual fund. Perhaps ironically given his celebrity, Lynch suggested that some well-known executives get too much attention from investors compared to a company’s fundamentals. He used the example of Bethlehem Steel in the 1980s, facing tough competition and heavy legacy costs. “I’ll tell you, if Jack Welch, Warren Buffett, and Bill Gates tried to turn around Bethlehem Steel 20 years ago, you would have never heard of those guys,’’ he said. (Ross Kerber, Globe staff)