Peter Lynch is a legendary investor.
He outlined 6 stock categories you MUST know:
π Fast Growers $SHOP $TSLA
π° Stalwarts $HD $V
π’ Slow Growers $JNJ $PG
π Turnarounds $META $PTON
π’ Cyclicals $BA $CAT
πΌ Asset Plays $BRK $IBM
Here is his playbook for each category π
He outlined 6 stock categories you MUST know:
π Fast Growers $SHOP $TSLA
π° Stalwarts $HD $V
π’ Slow Growers $JNJ $PG
π Turnarounds $META $PTON
π’ Cyclicals $BA $CAT
πΌ Asset Plays $BRK $IBM
Here is his playbook for each category π
π Fast Growers (like $TSLA, $SHOP)
Playbook: Allocate only a limited portion of your portfolio due to higher risk.
This is Lynch's preferred category:
π High Growth Rate (> 20%).
βοΈ Potentially Overvalued.
π Can be huge winners.
β οΈ Risk-Prone.
π¦ Aggressive.
π‘ Innovative.
Playbook: Allocate only a limited portion of your portfolio due to higher risk.
This is Lynch's preferred category:
π High Growth Rate (> 20%).
βοΈ Potentially Overvalued.
π Can be huge winners.
β οΈ Risk-Prone.
π¦ Aggressive.
π‘ Innovative.
π° Stalwarts (like $KO, $HD or $V)
Playbook: Own them, donβt trade them.
βοΈ Lower Risk.
π Large scale.
πͺ Stable nature
β Portfolio Anchors.
π Moderate Growth.
π° Regular Dividends.
π‘οΈ Recession Resilience.
Playbook: Own them, donβt trade them.
βοΈ Lower Risk.
π Large scale.
πͺ Stable nature
β Portfolio Anchors.
π Moderate Growth.
π° Regular Dividends.
π‘οΈ Recession Resilience.
π’ Slow Growers (like $JNJ or $PG)
Playbook: Lynch suggests pruning them from the portfolio. He's not particularly fond of this category.
πͺ Low volatility.
π Sector leaders.
πΆ Minimal growth.
π° Regular dividends.
π‘οΈ Low risk, low reward.
βοΈ Mature and predictable.
Playbook: Lynch suggests pruning them from the portfolio. He's not particularly fond of this category.
πͺ Low volatility.
π Sector leaders.
πΆ Minimal growth.
π° Regular dividends.
π‘οΈ Low risk, low reward.
βοΈ Mature and predictable.
π Turnarounds (like $PTON)
Playbook: Lynch generally steers clear of turnarounds.
Why? They seldom turn.
β οΈ High risk, high reward.
π Potential for recovery.
β³ Patience is required.
π Demands expertise.
π Underperforming.
π² Volatile.
But exceptions exist $META π
Playbook: Lynch generally steers clear of turnarounds.
Why? They seldom turn.
β οΈ High risk, high reward.
π Potential for recovery.
β³ Patience is required.
π Demands expertise.
π Underperforming.
π² Volatile.
But exceptions exist $META π
π’ Cyclicals
Playbook: A challenging field, best suited for industry insiders, not beginners.
Lynch advises caution.
π« Not beginner-friendly.
β²οΈ Predictable patterns.
π° Fluctuating profits.
π Industry-specific.
β Timing is crucial.
π©οΈ High volatility.
Playbook: A challenging field, best suited for industry insiders, not beginners.
Lynch advises caution.
π« Not beginner-friendly.
β²οΈ Predictable patterns.
π° Fluctuating profits.
π Industry-specific.
β Timing is crucial.
π©οΈ High volatility.
πΌ Asset Plays
Playbook: Discover hidden value before the market does and be patient.
π Patience is key.
π° Seek undervalued assets.
π§ Tangible or intangible plays.
π Requires thorough analysis.
π― Potential acquisition targets.
Example: eBay's spin-off of PayPal $PYPL.
Playbook: Discover hidden value before the market does and be patient.
π Patience is key.
π° Seek undervalued assets.
π§ Tangible or intangible plays.
π Requires thorough analysis.
π― Potential acquisition targets.
Example: eBay's spin-off of PayPal $PYPL.
But wait, there's more!
Lynch identified favorable stock traits he always looks for.
These traits helped him outperform the market by a factor of 2X over 13 years.
We list them in our full article here π
appeconomyinsights.com/p/6-stock-typeβ¦
Lynch identified favorable stock traits he always looks for.
These traits helped him outperform the market by a factor of 2X over 13 years.
We list them in our full article here π
appeconomyinsights.com/p/6-stock-typeβ¦
β’ β’ β’
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