Group_3 - Investment Strategies By PETER LYNCH GROUP-3...

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Click to edit Master subtitle style 5/30/11 Investment Strategies By PETER LYNCH GROUP -3
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5/30/11 Who is Peter Lynch ? In the early 1980s, a young portfolio manager named Peter Lynch was becoming one of the most famous investors in the world, and for a very understandable reason – when he took over the Fidelity Magellan mutual fund in May of 1977 (his first job as a portfolio manager ), the assets of the fund were $20 million. He proceeded to turn it into the largest mutual fund in the world, outperforming the market by a mind-boggling 13.4% per year annualized !
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5/30/11 How did Lynch do it ? Lynch accomplished this by using very basic principles, which he was happy to share with just about anyone. Peter Lynch firmly believed that individual investors had inherent advantages over large institutions because the large firms either wouldn't or couldn't invest in smaller-cap companies that have yet to receive big attention from analysts or mutual funds.
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5/30/11 Investing Lessons Taught by Peter Lynch
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5/30/11 1. Only Buy What You Understand •. According to Lynch, our greatest stock research tools are our eyes, ears and common sense. •. We all have the ability to do first-hand analysis when we are watching TV, reading the newspaper, or listening to the radio. •. In other words, most of the stock market is in the business of serving you, the individual consumer - if something attracts you as a consumer, it should also pique your interest as an investment.
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This note was uploaded on 05/30/2011 for the course ECON 101 taught by Professor Ke during the Spring '11 term at Lethbridge College.

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Group_3 - Investment Strategies By PETER LYNCH GROUP-3...

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