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Peter Lynch: Outperform the Market By This Simple Strategy

edited April 16 in Other Investing
https://m.youtube.com/watch?v=Xv1tKG_5EXY

Peter Lynch: Outperform the Market By This Simple Strategy

Simple but may make lots sense long term

Interesting insights...keep buying what you know..




.??(until you almost retire? Then readjust/rebalanced as needed)

Comments

  • It may be “simple” advice but it’s an outstanding share. Thanks! Great advice here.
  • Ditto.
  • Thanks for sharing!
  • edited April 22
    A cute 10 minute clip. Lynch always was telegenic - hasn’t skipped a beat since leaving Magellan when it was at the crest of the wave. Is it as simple as “Buy what you know”? More appropriately what he means is : “Learn / Research / Study” before you buy. Maybe study 5-10 prospects and weed out the weakest ones before buying that “gem”. That’s hard work. If it was easy, we’d all be rich or famous like Lynch. I agree with the thought - right on the money. But I find it a lot easier (lazier) to buy mutual funds instead of stocks. Let the manager do the hard work.
  • Quite right, @hank. Except for a very few stocks I've been monitoring for YEARS. At this point, in retirement, there is NO single-stock that's good enough to compel me to invest at the WRONG time. Like right now, with valuations through the roof. But when the time comes, I'd love to reap the benefit of my homework. I would like for the effort not to be theoretical anymore.
  • hank said:

    A cute 10 minute clip. Lynch always was telegenic - hasn’t skipped a beat since leaving Magellan when it was at the crest of the wave. Is it as simple as “Buy what you know”? More appropriately what he means is : “Learn / Research / Study” before you buy. Maybe study 5-10 prospects and weed out the weakest ones before buying that “gem”. That’s hard work. If it was easy, we’d all be rich or famous like Lynch. I agree with the thought - right on the money. But I find it a lot easier (lazier) to buy mutual funds instead of stocks. Let the manager do the hard work.

    Yes Hank. In another video, he stated (paraphrased), if you don't know what you're buying, buy mutual funds.
  • Howdy folks,

    I've tried to follow his advice since his book, what 20 years ago? It includes doing your homework as mentioned above, but it goes further. He posited in his book that each and every person has some bit of knowledge that can be exploited in the market. Listen, hear, watch, study, and most importantly ACT. You don't have to bet the mortgage but ACT. Do something positive on your little bit of data.

    and so it goes,

    peace and keep wearing the damn mask,

    rono
  • edited April 22

    @rono has it right.

    Lynch was always big on the concept of keying off something you personally knew a lot about. Used to cite his wife’s judgement re fashion trends as an example. So, more accurately, one might key off some new trend in fashion (ie personal accessories, gym attire, shoes) you are very familiar with and than do the grub work of trying to figure out which of its manufacturers / sellers / product lines will grow and succeed - and which won’t.
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