Spotting investment ideas

  • Slow Growers – Aging companies growing slightly faster than GDP. Usually bought for their dividends and buybacks
  • Stalwarts – Large, quality companies that are profitable and are growing slightly faster than slow growers
  • Cyclicals – A company whose sales and profits rise and fall in a regular, if not completely predictable fashion
  • Fast Growers – Small, aggressive new enterprises growing at 20-25% per year
  • Turnarounds – Battered, bruised, and possibly in, or facing bankruptcy. The performance of these stocks is largely uncorrelated with the broad market
  • Asset Plays –A company that’s sitting on something valuable that the market has overlooked, for example, real estate

– Peter Lynch – Author of One up on the Wall Street

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