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1.
Peter Lynch's investment style is best described as what?
Opportunistic. Lynch took ideas from many different investment philosophies. He went wherever he thought the best opportunities were.
2.
Peter Lynch believed investors should invest for the short term so that they do not lose money.
False. He believed in long-term investing and ignoring short-term movements in the market.
3.
What three fundamental criteria did Peter Lynch use to evaluate a stock?
Profits, business model, and current stock price. Lynch looked for profitable companies with solid business models selling at good prices. He was willing to pay more for those companies than other managers might have paid, and he tolerated debt as long as the profits were there and the business model was right.
4.
What was Peter Lynch's favorite investment metric?
P/E ratio. Although he valued several, P/E ratio was his favorite.
5.
According to Peter Lynch, what are the big winners in the stock market?
Fast growers. These companies have the biggest potential for growth, along with a lot of risk.
