The 3rd installment of investment strategies is Peter Lynch investing. Peter Lynch was famous for running the exceptionally successful Magellan Fund. He loved to go to the malls to see what new stores were popping up. Lynch also had a wife and daughter, he frequently asked them what thy were in to. He would then go in to these stores to see if he enjoyed the experience they offered. Lynch would also buy some of the items to test them out.
If Lynch decided that the product was great, only then would he run an analysis on the company to see if it was fundamentally sound. He dubbed this investing style “investing in what you know.”
Lynch also had his fall back investment of Savings and Loans or S&L’s. He was extremely knowledgeable when it came to them using said knowledge to gain an insight into which S&L’s to invest in.
With “investing in what you know”, Peter Lynch was able to become one of the most successful fund managers of all time. He believed that with a little research and common sense anyone could replicate his success in the stock market.