Fidelity Advisor^® Low-Priced Stock Fund: Investment Approach

• Fidelity Advisor^® Low-Priced Stock Fund uses an opportunistic approach in seeking undervalued stocks. It focuses mostly on small- and mid-cap companies, including overseas. Most holdings have share prices below $35 per share or an earnings yield at or above the median for the Russell 2000^® Index. (The earnings yield is the inverse of the price-earnings (P/E) ratio; a high earnings yield means a low P/E ratio.)
• Our investment process is based on the belief that many low-priced stocks are mispriced. Mispricings are especially likely to occur in businesses that seem boring and out of favor or which require careful analysis.
• We seek to buy higher-quality companies with stable growth prospects that trade at a discount to our estimate of intrinsic (fair) value.
• Where the gap between price and value is especially compelling, we may invest in firms whose near-term prospects appear challenged. We cast a wide net, and many holdings are outside of the fund's benchmark.
• We invest with a long-term time horizon and global perspective, seeking to deliver attractive risk-adjusted returns. To help manage risk, we look for understandable businesses that are resilient and growing, with honest and capable management, purchased at a modest price.