by Peter Lynch
According to Peter Lynch, it all boils down to the following mantra: Anyone can become an expert in their profession and pick winning stocks with just a little research. A vice-chairman of Fidelity Management & Research Company, the investment advisory arm of Fidelity Investments, and a member of the Fidelity funds’ Board of Trustees, Peter Lynch has a wealth of experience in the financial services industry.
During the time that he managed Fidelity Magellan Fund, the portfolio of what was then the world’s best-performing fund at the time.
Beating the Street and Learning to Earn, a beginner’s introduction to financial literacy, is one of his best-selling books, having sold more than a million copies worldwide.
This book appears to be highly recommended for anyone interested in investing in the stock market. When it comes to investing, Lynch is well-known for his maxim “invest in what you know,” yet he is far from reckless in his book, and he actively discourages it.
According to his core premise, individuals such as myself and you are aware of new trends and investment prospects. If you are familiar with and cautious while investing in “baggers,” which are stocks that increase in value over time, you can become wealthy. Lynch says this provides the average person with a competitive advantage over specialist investors, hence the name. His methods for analyzing companies are laid out in detail throughout the book. He gives a solid basis for value-oriented investors—not to mention the author’s sense of humor, which is present throughout the book (like Buffett).
The only problem I can find in the book is that it has been out of print for decades, which is a shame given its subject matter. Since then, the dot-com bubble burst and the Great Recession of 2008 have taken place. This is not a problem for me because the concepts and tactics presented in the book are worldwide. It has no impact on the overall quality of the book.