Picking Stocks: Peter Lynch’s way …

Posted 2 CommentsPosted in Peter Lynch

Peter lynch : As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return,consistently more than doubling the S&P 500 market index and making it the best performing mutual fund in the world.He also co-authored a number of books and papers on investing and coined a […]

Loss aversion bias….

Posted Leave a commentPosted in Loss aversion, multibagger, Peter Lynch

 Here’s an example of a bias called as ‘Loss aversion bias’ See below example: Question:  Choose between:A. An 85% chance of winning $100 (the gamble); orB. A sure gain of $85 (the sure thing) Most people when given these choices, pick B because they think of themselves as conservative and after all a bird in hand […]

If you are long term investor….

Posted Leave a commentPosted in Benjamin Grahm, distress, exuberance, Long term investor, Peter Lynch, Warren Buffett

If you are long term investor, Then remember some things:  1) Be ready to judge a scrip fundamentally and first convice yourself to maximum extent before entering in any scrip2) Do your own research and hone your researching skills with experience3) Don`t get swayed away by irrational exuberance and irrational panicks4) Irrational exuberance gives investors […]