Peter Lynch is a successful American fund manager and famous investment expert. He had his own philosophy and principles regarding investing, some of which are as follows
“The best investments are those you can find in what you know.”
Lynch emphasized investing in industries or companies that individuals understand. He has more information about the field he is interested in studying, which he believes gives him more powerful insights when making investment decisions.
“Small companies can achieve great success.”
Lynch said he saw an opportunity for small companies to achieve significant growth. They argued that when large companies have already reached the peak of growth, smaller companies can succeed through innovation or by pioneering new markets.
“Look for a good company, not a good stock price.”
He believed that many investors tend to focus only on stock prices and overlook the fundamental value or potential of a company. Lynch believed that if a company to invest in has great growth potential and a stable foundation, it is worth investing in for the long term, even if the company's stock price is currently low.
“Find future growth potential.”
Lynch focused on a company's growth potential rather than stock price movements or short-term volatility. In particular, new products, services, and increased market share were considered important indicators for predicting a company's long-term growth.
Peter Lynch's investment principles provide practical, realistic guidance for successfully generating profits in the stock market, and his experience and achievements have been a great inspiration to investors.