So Peter Lynch is another globally respected investment genius's,
if you would like.
He embodies a solid, but not really exotic investment strategy.
It's quite a simple strategy, if you want to determine that way.
So, his story is that after graduating from Boston school way back in 1965.
Lynch was hired, as an intern at the company that came to be forever
linked with his name Fidelity Investments.
This was mostly, because he caddied for
Fidelity's president at a local country club.
He went from such humble backgrounds and such humble beginnings.
He began financial career.
Among his many accolades, Lynch is noted for a very important and
simple theory, which is that invest in what you know.
In one of his books and I can't remember which one,
because he's written quite a few, might have written seven or eight of them.
But in one of his books, he essentially talks about
spending every Saturday with his daughters when he would
inevitably ask them or maybe the daughters asked them.
Daddy, take us to Gap, so that we can buy some clothes.
So reluctantly, Mr. Lynch would every Saturday give
his daughters hundre dollars to shop and sat out in the mall just waiting.
So after a few weekends of this routine, his eyes suddenly lit up.
He noticed that all the teens are dragging their parents to the Gap store and
he sat outside, and counted the number of people going through the checkout lines.
After an observing and guessing at the average of what's spent,
he had up a ready or decent estimate or
maybe a rough estimate of how much the store was making.
He started liking the GAP store and inside of the company and
had his stuff resource the company the following Monday.
So it was in his portfolio and became one of his best buys ever
returning more than 1000%, that's ten times.
I turned it over for 1,000 persons during the 1980s.
So investing in what you know is a very good strategy and
it's not just an excellent starting strategy, an excellent starting point,
but it can also be a very good enduring strategy rather than trying to become
an expert on really complex investments strategy's over night and
trying to expand your local knowledge.
You might want to use your personal life and work experience,
your industrial experience to choose securities of companies and
industries you're really familiar with.
Think about your goal as building a portfolio of non-losers,
as opposed to a group of winners.
If you combine non-losers with investing in companies and
securities that you know, it often leads you to undervalued stocks and
really true bargains that maximize your investment dollars and
we also want to find one or more of those ten baggers.
Award famous linked messages called, as I would like to call it.
I mean, those baseball fans, you know that in baseball,
bags is a popular term for the bases.
Finding a ten-bagger, which is basically hitting two home runs and a double.
Means that you found a stock, a ten-bagger, basically,
means that you found a stock that returned ten times of your original purchase price,
which is what Lynch did with Gap.
He got more than ten times return with Gap store way back in the 1980s.
So I mean, even if you are not so successful, but
if you find a group of two or four baggers,
that should make your portfolio extremely happy.
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