Fidelity®

Low-Priced Stock

Fund

Shareholder Update

July 31, 2004

Contents

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The views expressed in this update reflect those of the portfolio manager only through the end of the period as stated on the cover and do not necessarily represent the views of Fidelity
or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to
update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as
an indication of trading intent on behalf of any Fidelity fund. The securities mentioned are not necessarily holdings invested in by the portfolio manager or FMR Corp. References to
specific company securities should not be construed as recommendations or investment advice.

Investments in smaller companies may involve greater risks than those in larger, more well known companies.

This shareholder update is not part of the fund's financial report and is submitted for the general
information of the shareholders of the fund. This update is not authorized for distribution to
prospective investors in the fund unless preceded or accompanied by an effective prospectus.

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Fund Talk: The Manager's Overview

Market Recap

If investors have felt slightly dizzy of
late, it might be due to the equity
markets' reversal during the
12 months ending July 31, 2004. In
the first half of the period, stocks were
hopping due to optimism about the
recovering economy. In that time,
speculative, high-growth industries
such as semiconductors and
biotechnology led the charge. But in
the period's second half, the less
glamorous but steadier growth of
household and personal product
companies, among others, took on
more appeal. There were a number
of reasons for the turnaround:
near-record-high prices for oil and
gasoline; concerns about the effects
of interest rate hikes and rising
inflation on corporate profits; an
unsettled geopolitical environment;
and threats of terrorism, to name a
few. The equity markets' reversal is
well-illustrated by the returns of the
Standard & Poor's 500^SM Index - a
popular benchmark of commonly
held stocks. In the first six months of
the period, the S&P 500® gained
15.23%. But the benchmark suffered
a loss of 1.78% in the second half of
the period. For the 12 months overall,
the S&P 500 climbed 13.17%.
Meanwhile, the Dow Jones Industrial
Average^SM - a performance
measure of 30 large-cap, blue-chip
stocks - rose 12.11%, and the
tech-heavy NASDAQ Composite®
Index returned 9.29%, despite losing
8.45% in the past six months.

An interview with Joel Tillinghast, Portfolio Manager of Fidelity® Low-Priced Stock Fund

Q. How did the fund perform, Joel?

A. The fund produced a return of 21.90% during the 12-month period ending July 31, 2004, outperforming the 17.06% return for the Russell 2000® Index and the 16.06%
advance of the Lipper^SM Small Cap Funds Average.

Q. What drove the fund's solid performance relative to its index during the past year?

A. Better returns among the fund's holdings in three sectors - consumer discretionary, financials and technology - were the principal reasons for its favorable results.

Q. Did you pursue any notable themes in the consumer discretionary sector?

A. Large homebuilders, such as D.R. Horton and U.K.-based Barratt Developments, continued to be an area of focus. These companies have been effective at buying large
portions of land at good prices, and they've demonstrated an ability to swiftly deal with the complicated process of working with local governments to obtain building permits.
Larger homebuilders also can achieve economies of scale, particularly with costly building materials. Despite concerns that rising interest rates could slow new home purchases
and the earnings of these companies, their stocks performed well. D.R. Horton produced surprisingly strong earnings growth, and its stock remained inexpensively valued.
Overweighting two retail stocks - British apparel retailer Next PLC and drug store operator CVS - also made a large contribution to the fund's performance. Both Next and
CVS consistently beat analysts' quarterly profit growth expectations.

Q. What was your strategy in the financials sector?

A. I sought a balance of companies that could benefit from declining interest rates and those whose businesses might improve in a climate of rising rates. The fund had some
success in both areas. Doral Financial, Puerto Rico's leading mortgage banker, saw its business flourish when historically low rates fueled brisk demand for home mortgages. On
the flip side, PMI Group, a provider of private mortgage insurance, benefited as domestic rates rose in 2004. Rising mortgage rates reduced the frequency of mortgage
refinancings, which, in turn, led to fewer policy cancellations. Overall, the fund was underweighted in the sector relative to the index largely because it's generally difficult to
find financials whose businesses don't suffer when rates increase.

Q. Credit card lender MBNA became the fund's second-largest holding. Why?

A. MBNA uses affinity marketing to attract customers affiliated with specific colleges, sports teams and other areas of personal interest, which gives the company a lower-risk
credit profile than its competitors because its customers tend to be more inclined to pay their bills on time. MBNA's credit quality improved and its quarterly earnings frequently
beat the market's expectations during the past year. That said, MBNA didn't meaningfully influence the fund's performance.

Q. In the tech sector, the fund's holdings produced a gain of more than 14%, while those in the index were down nearly 1% . . .

A. I identified a few successes that helped offset the sector's weakness. For example, Hong Kong-based Kingboard Chemical, a manufacturer of substrates for printed circuit
boards (PCB) used in mobile phones and computers, rallied sharply on rising demand for new PCB designs and favorable pricing trends. Logitech, a maker of computer mice,
generated strong earnings growth and its stock performed well. Focusing on tech services companies that tend to have recurring revenues, such as First Data, Affiliated
Computer Systems and Computer Sciences, also worked out favorably. Elsewhere, underweighting semiconductor stocks was helpful, as this was the market's worst-performing
industry.

Q. What investments proved disappointing?

A. Supermarket chain Safeway suffered from a labor strike that ended in February, which caused a percentage of its customers to patronize other food retailers. Several
health care positions declined due to the uncertainty about how the 2005 U.S. federal health care budget would be structured. Respiratory services supplier Lincare Holdings,
for example, faces a proposed change in Medicare legislation that would slash reimbursement payouts for its services. Two hospital operators - Health Management Associates
and Universal Health Services - were hurt by worries about bad debt and rising costs.

Q. What are your thoughts about the remainder of 2004?

A. One of my goals during the next several months is to reduce the fund's cash level, which proved to be a drag on fund performance during the past year. Fund sales were
further limited at the end of July, which should help stabilize the rate of net inflows. I successfully utilized the research coverage of our small-cap analyst team in London and
Asia during the past six months, and I expect to continue using them to broaden the scope of the fund's investment opportunities.

Fund Facts