6 Types of Stocks According to Peter Lynch: The Secret to Effective Investing

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Peter Lynch is one of the most prominent legends in the global stock investment world. His name is associated with the Fidelity Magellan fund, where he served as manager from 1977 to 1990. During that period, the fund achieved an average annual return of up to 29.2%, double the growth of the S&P 500.

Peter Lynch's unique investment mindset and strategy are vividly demonstrated in the famous book “One Up on Wall Street” (One Up on Wall Street). Although published in 1989, the lessons from this book still retain their full value, inspiring many generations of individual investors worldwide. One of Lynch's core philosophies is the advice to invest in what the investor understands well, thereby helping to limit mistakes and maintain composure when the market fluctuates.

In particular, Peter Lynch classified stocks into 6 main groups based on their growth characteristics, risks, and competitive advantages. This helps investors easily select and build appropriate investment strategies.

Viet Hustler will explore these 6 types of stocks in detail with you in today's article.

1. Fast Growth Stocks (The Fast Growers)

2. Stable Stocks (The Stalwarts)

3. Slow Growth Stocks (The Slow Growers)

4. Turnaround Stocks (The Turnarounds)

5. Cyclical Stocks (The Cyclicals)

6. Asset Plays (The Asset Plays)