5 stocks Peter Lynch would love

Investing genius Peter Lynch in his book ‘One Up on Wall Street’ talked at length about 6 stock categories and connected their unique traits to an investing thesis.

Of the six categories, fast growers are Lynch’s most favourite. These are small companies that grow aggressively and often become multibaggers.

Their annual earnings growth is usually over 20%. As per Lynch, even 1 or 2 of these stocks can create substantial wealth for investors, given they are spotted when still small.

Here’s an example. Dixon was relatively small 5 years ago with a market cap of Rs 2,800 crore. But with its net profit leaping over 40% annually since then, its m-cap is now Rs 74,000 crore!