Peter
Lynch is Known as an ever green fund manager in United states. He managed
fidelity Magellan fund from 1977 to 1990. His average annualised return for 13
year period was 29 %. He believed in Common sense approach by investing in known
business models only.He always checked under valued stocks, which can yield
better gains over a period. Let us check Peter's 10 golden Rules:
1. A stock market decline is a
great buying opportunity.Never postpone your investing at that time.
2. Too much diversification
will reduce your gains.Concentrate on well studied winning stocks only.
3. Learn to examine large
number of shares.Otherwise,you cannot select the right stocks.
4. In the long run, superior
stocks will beat all type of bond returns.
5. Shares are not lottery
tickets.Learn the activities of the company before you invest.Visit the company
outlets to see the demand of products.If
people are buying it, then check the financials.
6. Don't look at index
only.Check how many shares advanced and how many declined.
7. Fifth standard maths is
sufficient to succeed in stock market.But,you should do the home work.
8. Never expect to win all
times.Success of 6 out of 10 is a good thing.
9. If you cannot analyse the
stocks self, invest in good mutual funds.
10. Look into the 'Earnings' of
a company to ensure future gains. for
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