STREET DOGS
Lynch
Investing principles from Peter Lynch’s book Beating The Street
Long shots almost always miss the mark. The extravagance of any corporate office is directly proportional to management’s reluctance to reward shareholders. Excellent companies are thrifty. They seek to maximise returns by running their operation efficiently and seeking to be the best at what they do. Companies that buy themselves glamorous … office towers … corporate jets, massive advertising campaigns aimed purely at sprucing up the corporate image, and award executives fat salaries that are not linked to performance are probably too concerned with self-aggrandisement to maximise returns for shareholders. Some of the very best investments Lynch made were cyclical companies in difficult industries that turned out to be the last man standing when all their rivals had gone broke. The best stock to buy may be the one you already own. Many stocks which later became major holdings started out as minor purchases by the Fidelity Magellan Fund. Often it is unnecessary to run around looking...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.