3 Stocks Peter Lynch Would Love
Peter Lynch is a hero of the small investor. In his two best-selling books, One Up on Wall Street and Beating the Street, he laid out an easy-to-understand strategy of how individual investors can succeed in the stock market.
Lynch's most well-known tenet was to invest in what you know. He also liked to buy shares of fast-growing companies with a low PEG ratio, a metric that compares the price-to-earnings ratio with the company's underlying growth rate in earnings per share.
Another important aspect of Lynch's approach was focusing on stocks that had a "story," such as an expanding base of profitable stores, a new product that was going to cause a boom in sales, or anything else that could keep the company's earnings growth up over the long term.
Source Fool.com
