6 Stock Categories of Peter Lynch

Slow growers

- Mature companies with earnings growth slightly higher or the same as GDP growth - High and consistent dividend payout. - Who should invest: Dividend investors


- Earnings growth is double the country’s GDP growth - Businesses that are resilient during economic downturns - Who should invest: Conservative long-term investors

Fast growers

- Aggressive small and mid caps with earnings growth of 20-35% - Volatile share prices - Who should invest: Investors with a high risk appetite


-If the economy is booming, they perform well. -The opposite happens when the economy is depressed. Who should invest: Experienced investors looking to play on macro trends


- Beaten down stocks - May lead to wealth destruction Who should invest: Investors with high risk appetite and willingness to conduct thorough fundamental analysis

Asset Plays

- Hidden value in the balance sheet in the form of cash balance, real estate holdings, etc. Who should invest: Old-school value investors

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