Published: 09th Aug 2024
By: Value Research
From 1977 to 1990, while managing the Fidelity Magellan Fund, Lynch generated an annualised return of 29.4%, making it the best-performing fund in the world.
It is possible. You can follow his stock-selection process by analysing the 6 stock categories he laid out in his book, ‘One Up on Wall Street’. Swipe for a lowdown on each category:
These are large and old companies with little to no room for growth. They are beyond their peaks & mostly pay out dividends. HUL is an apt example of a slow grower.
They are also large, profitable companies, but faster than slow growers. Their earnings usually grow 10-20% & Lynch prefers them as they offer safety during market downturns.
Lynch’s favourites are these small companies that grow aggressively, usually over 20% per annum. These can be multibaggers, if picked when still small like Dixon Tech 5 years ago.
Then, there are cyclicals like Tata Steel, the turnarounds like CG Power and the asset plays like holding companies. But which category is best for you?
Using Peter Lynch’s criteria and our own filters, we have shortlisted 2 categories and 10 promising stocks ideal for wealth creation. Grab the latest Wealth Insight to check them out.