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What are Peter Lynch’s stock selection principles?

Peter Lynch's stock selection principles:

01. The company must operate an ideal and simple business. The more silly the name of this business, the more ideal the company.

02. The company’s business is “boring”.

03. The company’s business is “annoying”.

04. Get rid of the practice and become independent by withdrawing funds.

05. Institutional investors will not buy its shares, and analysts will not pay attention to its stock trends.

06. There are many rumors about the company, related to toxic waste or the mafia.

07. The business you run makes people feel depressed.

08. Being in an industry with zero growth.

09. It has a barrier.

10. People should keep buying its products.

11. It is a user of high-tech products.

12. The company’s employees buy it.

13. It is buying back its own stock.

Selecting the best companies from companies with the above characteristics is Peter Lynch's stock selection principle. Peter Lynch's stock selection principles are summarized under the specific economic background of the country. When we apply them, we must grasp its principles and not copy them.