The Four Tenets of Peter Lynch [Slides]VW Staff
Four Tenets Of Peter Lynch Kotak Securities, Slide Share
Who is Peter Lynch?
- The legendary investment guru and one of the most famous fund managers in the US
- The one who from 1977-1990 managed the Fidelity Magellan Fund and was the best performer in mutual funds over that period
- Has written various books on investing, which hold a wealth of ‘practical’ knowledge
The Four Tenets of Peter Lynch
- Invest in what you know
- Simple & most famous principle by Peter Lynch
- This rule applies even to the amateur non professional investor
- With this rule, the amateurs can outperform even the market experts
- Buy what they don’t know
- Avoid glamour and seek out the overlooked
- The best bargains can be found among these neglected stocks
- Boring is good
- Small, underfollowed companies present the greatest opportunities to long-term investors
- Mutual Funds as an option
- Based on the principle that when you pick up your own stocks, you ought to outperform the experts.
- Otherwise, it doesn’t make much sense to invest by oneself.
- The mutual fund is wonderful for people who have neither the time nor the inclination to test their wits against the stock market
- Don’t waste time worrying
- It is futile to predict the economy and the stock market
- Focus on the “facts” at hand rather than worry about the future
- Don’t sell the stock if the ‘story’ is still good, whether the market is up or down.