📖Peter Lynch
Six Categories of Stocks
Classify stocks to apply the right strategy to each.
I place stocks in six general categories: slow growers, stalwarts, fast growers, cyclicals, turnarounds, and asset plays. Each requires a different strategy.
🏠 Everyday Analogy
📖 Core Interpretation
Peter Lynch advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：Different stock types require different expectations and holding periods.
AI Deep Analysis
Get personalized insights and practical guidance through AI conversation
❓ Why It Matters
Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.
🎯 How to Practice
Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.
⚠️ Common Pitfalls
Having opinions without execution criteria
Reviewing outcomes but not decisions
Abandoning rules during volatility spikes
📚 Case Studies
1
Chrysler Near Bankruptcy (1982)
U.S. automaker faced severe losses, layoffs, and survival doubts amid recession and Japanese competition.
✨ Outcome：Lynch viewed pessimism as overdone, invested as turnaround began, and profited when restructuring and new models restored confidence.
2
Fannie Mae Interest-Rate Panic (1987)
Rising interest rates sparked fear that Fannie Mae’s mortgage portfolio would implode, hammering the stock.
✨ Outcome：Lynch bought during panic, believing earnings power was intact; as rates stabilized and profits grew, the stock rebounded strongly.
See how masters handle real scenarios?
30 real investment dilemmas answered by legendary investors
Explore Scenarios →