add

Monday, August 27, 2007

INVESTMENT IDEA S-Peter Lynch

Peter Lynch investment philosophy for selecting a company

Invest in What You Know (The return expectations are derived from the company’s "story")

Bottom-up approach (prospective stocks must be picked one-by-one and then thoroughly investigated)

Examine the company’s plans (how does it intend to increase its earnings, and how are those intentions actually being fulfilled)

Peter Lynch on companies to avoid

Hot stocks in hot industries.

Companies (particularly small firms) with big plans that have not yet been proven.
Profitable companies engaged in diversifying acquisitions. Lynch terms these "diworseifications."

Companies in which one customer accounts for 25% to 50% of their sales

No comments:

Post a Comment

 STOCK IDEA:        Apollo Pipes Ltd 349.00 AROUND 325 ITS A GOOD BUY FOR LONGTERM   ...