Peter Lynch
Peter Lynch
Peter Lynchis an American businessman and stock investor. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently more than doubling the S&P 500 market index and making it the best performing mutual fund in the world. During his tenure, assets under management increased from $18 million to $14 billion. He also co-authored a number of books and papers on investing and coined a number of well known mantras...
NationalityAmerican
ProfessionEntrepreneur
Date of Birth19 January 1944
CountryUnited States of America
My method for picking stocks has never changed. When businesses go from crappy to semicrappy, there's money to be made.
There are substantial rewards for adopting a regular routine of investing and following it no matter what, and additional rewards for buying more shares when most investors are scared into selling.
There's no use diversifying into unknown companies just for the sake of diversity. A foolish diversity is the hobgoblin of small investors. That said, it isn't safe to own just one stock, because in spite of your best efforts, the one you choose might be the victim of unforeseen circumstances. In small portfolios, I'd be comfortable owning between three and ten stocks.
You shouldn't just pick a stock - you should do your homework.
If you can follow only one bit of data, follow the earnings - assuming the company in question has earnings. I subscribe to the crusty notion that sooner or later earnings make or break an investment in equities. What the stock price does today, tomorrow, or next week is only a distraction.
Spend at least as much time researching a stock as you would choosing a refrigerator.
If all the economists in the world were laid end to end, it wouldn't be a bad thing.
If a picture is worth a thousand words, in business, so is a number.
We're not budgeting for it to do that. We think that it is possible that into our coffers you could probably push 8 or 10 million (euros) EBITDA ...but I think it's probably not the right thing to do in this period of consolidation.