As a mutual fund manager, Peter Lynch's career has been a succession of hard-earned achievements. In this book, the investment strategies that contributed to his phenomenal results are described and in a manner which is accessible to the average investor.
Lynch prefers small companies that have found a successful niche for themselves and have been able to duplicate that success outside of their original locations. He also likes companies in mundane industries that through price increases, cost cuts, and market share gains can consistently produce exceptional earnings growth. A believer in diversification, Lynch analyzes how to tackle each of six investment categories: fast and slow growers, turnarounds, asset plays, cyclicals, and "stalwarts."
He recommends that investors look for companies, in which they have an edge over the pros for example, firms with which they deal in the course of their jobs. He describes how to develop an investment case for a stock, and advises on when to buy and when to sell.
The suggestions that Peter Lynch offers are very valuable for the more sophisticated investor who is willing and able to do the necessary legwork. Mr. Lynch and his collaborator, John Rothschild, are also the authors of Beating the Street and Learn to Earn.
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