![]() how to find the most promising opportunities, what to look for in a company and what to avoid, how to use brokers, annual reports, and what to make of various numbers such as PE ratios, book value, etc. This book is divided into three sections:Ĭh.1 – 5: how to assess yourself as a stock picker, sizing up the competition, how to evaluate if stocks are riskier than bonds, and how to develop a successful stock-picking routine. Lynch argues that one must focus on investing in familiar companies, “such as L’eggs or Dunkin’ Donuts is that when you try on the stockings or sip the coffee, you’re already doing the kind of fundamental analysis that they pay Wall Street analysts to do.”( Location 584) You have to keep track of where the future growth is coming from and when it’s likely to slow down. ( Location 125)Īn amateur investor can pick tomorrow’s big winners by paying attention to new developments at the workplace, the mall, the auto showrooms, the restaurants, or anywhere a promising new enterprise makes its debut. For a stock to become a t tenbagger, its market cap must increase tenfold, from $10 billion to $100 billion. If you can follow only one bit of data, follow the earnings-he states. “All you need for a lifetime of successful investing is a few big winners ( Location 202)”. Lynch´s investment style is to find “tenbaggers” and make extraordinary returns on a few names. He worked as a golf caddy when he was a young boy and met a lot of rich investors who later would be very influential in shaping his career. He begins talking about his experience and educational background. As the manager of the Magellan Fund at Fidelity Investments between 19, Lynch averaged a 29.2% annual return, consistently more than double the S&P 500 stock market index and making it the best-performing mutual fund in the world. Peter Lynch is an American investor, mutual fund manager, and philanthropist. ![]()
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