Choose wisely. There is only one correct answer to each question.
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1.
What sorts of companies did Peter Lynch favor?
Those in industries he understood. Lynch invested in those in industries he understood. Lynch firmly believes that you should invest only in what you know. He shunned industries he didn't understand, even if they presented great value or great possibilities. Notice this echoes Warren Buffett's "circle of competence" idea.
2.
If you are interested in buying into a company because of one specific product, what would Peter Lynch's advice to you be?
Make sure that the product is a meaningful percent of sales. Otherwise, there isn't much sense in keeping an interest in the company.
3.
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.
4.
How did Peter Lynch feel that we should regard short-term market movements?
We should discard them. Lynch believed in investing for the long haul.
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.
