Prøve GULL - Gratis
THE PETER LYNCH GUIDE TO PICKING STOCKS
Outlook Money
|May 2024
Investor, fund manager and a best-selling author, all rolled into one - that's Peter Lynch. His books provide nuggets of practical approach to stock investing. We demystify his investing style to help you implement it when picking stocks. We also have some picks based on his strategy that you may consider

A random search on Google on “Who is Peter Lynch” will throw up two pieces of information about him, among others: his outperformance as a fund manager at Fidelity Investments and his status as a best-selling author. His investment philosophy in picking stocks has been widely acclaimed. During his tenure, the Fidelity Magellan Fund clocked 29.09 per cent annual returns compared to 14.47 per cent of the S&P 500 index.
However, few talk about how he underperformed in 1984, 1987, and 1990 versus the S&P 500, albeit by a small margin. Also, no one points out that because he didn’t manage funds directly for about 25 years, it is difficult to ascertain how his funds would have done if factors, such as value and momentum, were in vogue.
Nevertheless, there are learnings from him that can benefit investors. Let’s explore.
Learning From Lynch
Gems In Writing: His books—One Up On Wall Street, Beating The Street and Learn To Earn—provide a practical approach to investing rather than delving into complex theories. This puts retail investors at ease. His strategy of observing the world around him to discover potential stocks is a method that anyone can apply, making his investment philosophy accessible and empowering for amateur investors. What stands out is his ability to give a perspective on investing by looking at the investor’s consumption pattern.
Learn To Earn gives investors a brief understanding of economics and investing. Highlighting the importance of patience, Lynch says in this book, “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”
Denne historien er fra May 2024-utgaven av Outlook Money.
Abonner på Magzter GOLD for å få tilgang til tusenvis av kuraterte premiumhistorier og over 9000 magasiner og aviser.
Allerede abonnent? Logg på
FLERE HISTORIER FRA Outlook Money

Outlook Money
Gold vs Real Estate: What You Should Know
Both gold and real estate have long been preferred investment choices for Indians. They hold sentimental value, too. We compare the two and assess if one or both assets can complete your portfolio
7 mins
October 2025

Outlook Money
Strategic Vs Tactical Allocation
Fixed-income investments can be bucketed based on your time horizon. However, you can also tweak the allocation, tactically, in accordance with the market conditions
4 mins
October 2025

Outlook Money
Discipline Is Key, Shows This Retiree's Life
Pramod Agrawal, 64, a former banker, is an inspiration for active retirees who do not know what to do with their idle time post retirement. Pramod, who lives with his spouse in Ghaziabad, had the option of staying at home, like most retirees, but chose to use his expertise in new ways. Now, he is a visiting faculty at several institutes.
4 mins
October 2025

Outlook Money
Will The E20 Fuel Rollout Make The GST Benefit Ride Bumpy?
The GST rate cut will benefit most car and two-wheeler buyers, but the E20 fuel rule may upset your budget. Calculate well and plan ahead for a smooth ride
6 mins
October 2025

Outlook Money
Input Tax Credit In Insurance
Health insurance premiums in India have become more affordable after the government removed the 18 per cent goods and services tax (GST) on them.
2 mins
October 2025
Outlook Money
Regulatory Roundup
A few regulatory changes in September 2025, and how they will impact you
4 mins
October 2025
Outlook Money
Frugality: A Smart Money Move
We often equate frugality with penny-pinching behaviour. But it isn't. It is about being smart with money, and spending it on things that give value and satisfaction
5 mins
October 2025
Outlook Money
Here's How To Make Health Insurance Claims
For many people, health insurance is the safety net that prevents a medical emergency from turning into a financial burden. Yet, policyholders often find themselves confused while filing claims.
1 mins
October 2025

Outlook Money
Why Seniors Need To Know Their Legal Rights
Many senior citizens often end up in destitution after being abandoned by their kith and kin, typically after transferring their property. Can taking recourse to laws meant for seniors lend a helping hand?
5 mins
October 2025
Outlook Money
Advantage Of Low Cost, High Returns
If you want to stay away from the constant game of chasing outperformance or worrying about underperformance, exchange-traded funds (ETFs) can be a smart option. They provide broad market exposure, are cost-efficient, and eliminate the need to time the market. An index ETF allows you to invest in sectors and stocks of the underlying benchmark in the same proportion as the benchmark. If you want to invest in Nifty 50 companies, Nippon India Nifty 50 BeES could be a decent choice.
1 mins
October 2025
Listen
Translate
Change font size