Lynch Learnings: Part 1
It's worth reminding ourselves that bull markets don't last forever and that patience is required on both sides. The typical winner in the Lynch portfolio takes 3 to 10 years to play out. Stock price is the least useful information but it is the most widely tracked. On the internet companies Lynch says that few companies will dominate the area. Shareholders in these triumphant companies will prosper, while shareholders in the laggards, the has-beens, and the should-have-beens will lose money. Whenever you invest in a company you are looking for its market capitalization to rise. When looking at a company who has say a 100 or a 200 PE look at what it revenues need to be at say a 40 PE. Then see whether that revenue exists today for a company or not. It will be rare that such an enormous amount of revenue will be generated by some company. On internet businesses he says there are 3 ways to invest in this theme - First is the 'pick and shovels' method. In the gol...