New Delhi, Oct. 7 -- Legendary US market investor Peter Lynch, renowned for his successful investment strategies, shares the reason why he doesn't invest in AI stocks, while emphasising the importance of understanding one's investments.

The AI boom has led the market for the past three years, but Lynch, who achieved an average 29.2% annual return during his 13 years leading Magellan until 1990, has been content to observe from afar.

"I have zero AI stocks," Lynch said on "The Compound and Friends" podcast with investor Josh Brown. "I literally couldn't pronounce Nvidia until about eight months ago," he said.

Since ChatGPT's launch in late 2022, megacap tech stocks have surged, prompting many on Wall Street to wonder if the AI rally mir...