Golden Rule of Long Term Investing
Peter Lynch has been one of the most successful investors of the Wall Street running Fidelity’s Magellan Fund for 13 years between 1977 to 1990. During this time he had averaged 29.2% annual return. He always believes that any given small investor can make a lot of money in the stock market. In order to share his knowledge and experience, he wrote a few books; One Up on Wall Street, Beating the Street and Learn to Earn.
Peter Lynch has a very simple investment strategy; “invest in the companies that you see in your daily life”. As simple as it sounds.
On one interview he says; “People always invest in bunch of companies that they have no idea about it. Meanwhile I make money in Dunkin Donuts. I can understand the business. They have a shop in every corner. Even in recession people keeps going there. Hence I am comfortable investing in this company.”
Now we all have to sit down and think; to which companies can we apply this strategy in today’s world?
Thank you Peter Lynch!