Peter Lynch
Peter Lynch📌 Stock Picking

Peter Lynch's Stock Picking 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...

3 principles·Stock Picking

3 Key Stock Picking Principles

#1

Boring is Beautiful

"The perfect stock is attached to a company doing something dull or ridiculous. A company that does boring things is almost always a good buy."

Boring businesses often make the best investments.

🌱 Beginner★★★★☆
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#2

Growth at Reasonable Price

"The P/E ratio of any company that's fairly priced will equal its growth rate. If the P/E is lower than the growth rate, you may have found yourself a bargain."

Use the PEG ratio to find fairly valued growth stocks.

🌿 Intermediate★★★★★
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#3

Finding Tenbaggers

"In my experience, the best stocks to buy are the ones you already know."

Your best investment ideas come from your own daily experience as a consumer and professional.

🌿 Intermediate★★★★★
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Frequently Asked Questions

What are Peter Lynch's key stock picking principles?

Peter Lynch has 3 key principles on stock picking. The most important one is "Boring is Beautiful" — The perfect stock is attached to a company doing something dull or ridiculous.

How does Peter Lynch apply stock picking in practice?

Peter Lynch applies stock picking through several key principles including "Boring is Beautiful" and "Growth at Reasonable Price". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes Peter Lynch's approach to stock picking unique?

Peter Lynch's approach to stock picking is distinguished by a focus on long-term thinking and fundamental analysis. With 3 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.

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