#1
Insider Selling
"Heavy insider selling is a warning sign."
When executives dump large amounts of their own stock, they may know something you do not.
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Peter Lynch📌 Selling & Review
Peter Lynch's Selling & Review Rules
Peter Lynch (born January 19, 1944) is an American investor, mutual fund manager, and philanthropist. He managed the Fidelity Magellan Fund from 1977 to 1990, achieving an average annual return of 29.2%, making it the best-performing mutual fund in the world during that period. Lynch is famous for his "invest in what you know" philosophy, encouraging individual investors to use...
5 principles·Selling & Review
5 Key Selling & Review Principles
#2
Selling Cyclicals
"Sell cyclicals when inventories are building and the economy is booming."
Sell cyclicals when business conditions peak — rising inventories and full capacity signal the top.
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Selling Stalwarts
"With stalwarts, you make most of your money in the first two years."
Take profits on stalwarts after a 30-50% gain because they rarely deliver more than that in a single move.
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Story Changes
"Sell when the story changes."
The only valid reason to sell is when the fundamental story you bought into no longer applies.
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Regular Check-ups
"Keep up with your stocks the same way you keep up with your health."
Review your holdings periodically to verify the original investment thesis still holds true.
Read Full Analysis →Frequently Asked Questions
What are Peter Lynch's key selling & review principles?
Peter Lynch has 5 key principles on selling & review. The most important one is "Insider Selling" — Heavy insider selling is a warning sign.
How does Peter Lynch apply selling & review in practice?
Peter Lynch applies selling & review through several key principles including "Insider Selling" and "Selling Cyclicals". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Peter Lynch's approach to selling & review unique?
Peter Lynch's approach to selling & review is distinguished by a focus on long-term thinking and fundamental analysis. With 5 specific principles in this area, Peter Lynch provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
