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Investment Gems from Peter Lynch

Four tenets of peter lynch

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This presentation discusses the 4 tenets for investing given by the legendary investment guru and one of the most famous fund managers in the US, Peter Lynch.

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Page 1: Four tenets of peter lynch

Investment Gems from Peter Lynch

Page 2: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

Investment Gems from Peter Lynch

Who is Peter Lynch ?

Page 3: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

Who is Peter Lynch?

• The legendary investment guru and one of the most famous fund managers in the US

• The one who from 1977-1990 managed the Fidelity Magellan Fund and was the best performer in mutual funds over that period

• Has written various books on investing, which hold a wealth of ‘practical’ knowledge

Page 4: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

The 4 Tenets of Peter Lynch

Page 5: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

The Four Tenets of Peter Lynch

• Invest in what you know– Simple & most famous principle by Peter Lynch– This rule applies even to the amateur non

professional investor– With this rule, the amateurs can outperform even the

market experts

Page 6: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

The Four Tenets of Peter Lynch

• Buy what they don’t know– Avoid glamour and seek out the overlooked– The best bargains can be found among these

neglected stocks– Boring is good– Small, underfollowed companies present the greatest

opportunities to long-term investors

Page 7: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

The Four Tenets of Peter Lynch

• Mutual Funds as an option– Based on the principle that when you pick up your

own stocks, you ought to outperform the experts.– Otherwise, it doesn’t make much sense to invest by

oneself.– The mutual fund is wonderful for people who have

neither the time nor the inclination to test their wits against the stock market

Page 8: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

The Four Tenets of Peter Lynch

• Don’t waste time worrying– It is futile to predict the economy and the stock market– Focus on the "facts" at hand rather than worry about

the future– Don’t sell the stock if the 'story' is still good, whether

the market is up or down.

Page 9: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

The Four Tenets of Peter Lynch

Remember: Don’t always listen to the market and use a bottom-up approach

Page 11: Four tenets of peter lynch

THE BEST BROKER IN INIDA*. NO DEBATE HERE

Registered office: Kotak Securities Limited, 1st Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400021. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230/INE 011207251, OTC INB 200808136, MCXSX INE 260808130.

Disclaimer: Investments in securities are subject to market risks, please read the SEBI prescribed Combined RDD prior to investing.

* Awarded Best Broker in India by FinanceAsia in 2009 and 2010