The Four Tenets of Peter Lynch [Slides]

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.

See full slides below.

Four tenets of peter lynch from Kotak Securities

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