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Peter Lynch: Investment Guru and Author

Updated on April 30, 2015

Peter Lynch: Investment Expert and Author

Peter Lynch is one of the great investors of recent times, famous as much for his books and useful investment quotations. Lynch is Wall Street stock investor, currently working as a research consultant at Fidelity, where he has been working since 1966 (allegedly hired because he was caddying for Fidelity's president)

Here are some of Peter Lynch's publications and other financial articles and investment publications and ideas:

Peter Lynch

Books and Articles by Peter Lynch

Peter Lynch wrote several texts on investing with co-author John Rothchild, including One Up on Wall Street, Beating the Street and Learn to Earn

Lynch also many other investment articles, but perhaps more famously coined some of the best known investment and stock market sayings and quotations. His two most famous ideas that are often quoted are:

Invest in what you know

ten bagger - a stock that grows to ten times its purchase price

Books by Peter Lynch

Here are just a few of the investment books written by Peter Lynch.

Value Investing

A selection of good books on the subject of Value investing

Summary of Peter Lynch's Methods

Private Investors can outperform professionals

Private Investors can outperform professionals:

- Unconventional stock-picking

- Don't have to follow institutional rules

- they can avoid snap judgements

- they can buy small cap stocks (which is more difficult for large funds) and this is where multiple-baggers come from

- Take time to understand every stock in the portfolio

- Don't have to follow trends

- Buy boring unpleasant companies at bargain prices

Characteristics of good niche stocks"

- Strong Economic franchise:

- Slow growing industry, fast growing company

- limited competition

- high barriers to entry

- scope for growth

- simple business

- Owner Orientated management:

- penny pinching management

- good labour ralations

- surplus cash-flow returned to shareholders

- stock ownership by managers and directors

- financial strength:

- strong balance sheet

- earnings per share growth and sales consistency

- free cash-flow

- low inventory growth

- Low Price

- low price/earnings (P/E) ratio

- boring business

- little interest from fund managers

Peter Lynch: What to Avoid and when to Sell

How to manage an investment portfolio

What to Avoid

- Market Timing

- Technical Analysis

- Macro Economic Analysis

- hot stocks

- pulling out the flowers and watering the weeds

- selling losers and holding winners automatically

- stop-losses

- being a naive contrarian

- Derivatives

- regarding other investors successes as your loss

- playing catch-up

- being obsessed with liquidity

When to Sell?

- never sell when story remains strong (even if stock has risen or fallen since purchase)

- If fundamentals deteriorate relative to price, then sell

Other portfolio anagement factors

- don't diversify if you can no longer maintain a good knowledge of each investment (3 to 8 stocks up to a maximum of 12 stocks)

- Continue to monitor the story. If fundamentals remain and stock falls, buy more

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    • profile image

      anonymous 6 years ago

      Thanks for sharing.TASKey.com

    • profile image

      anonymous 7 years ago

      I just took a Wall Street Tour and i was so impressed with what i saw there on slow motion, as it was a walking tour, that i forgive those guys for our ruined economy

    • profile image

      julieannbrady 7 years ago

      Gosh, so many gurus ... can you imagine being THE guru to those gurus?

    • ElizabethJeanAl profile image

      ElizabethJeanAl 7 years ago

      When it comes to handling my money I would rather talk to the professionals than go it alone.

      Thanks for sharing

      Lizzy