Saturday, July 19, 2008

Lynch’s principles on effective stock picking

• Never invest in any idea you can’t illustrate with a crayon
• The extravagance of any corporate office is directly proportional to management of reluctance to reward shareholders
• The best stock to buy may be the one you already own
• If you like the store, chances are you will love the stock
• When insiders are buying it is a good sign
• All else being equal, invest in the company with the fewest colour photographs in its annual report
• Gentlemen who prefer bonds don't know what they are missing
• As long as you're picking a fund, you might as well pick a good one

Courtesy : Money Today

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