Peter Lynch Book

Hello you wonderful and intelligent individuals that make up this forum. I sincerely hope you are in good spirits and doing well.

I recently over the last week was reading the book Peter Lynch One Up On Wall Street, which i find a truly fascinating read. It is a good summary of how to conduct value investing through the eyes of Peter Lynch. It kindly mentions looking for small cap stocks that are often overlooked by Wall Street, such as Funeral Services company’s, Plastic Knifes and Forks manufacturers. Then hopefully when the company grows and gets more coverage it could lead to the stock being a multiple bagger. I often find these type of stocks have dwindling revenue as they dont have the support of institutional investors.

I kindly please wondered if anyone has put on their watchlist or has invested in a small cap stock in a niche industry that is performing well and if they please had the name of the company? This would be very helpful for my research in terms of what to look for in a niche company, it would be highly appreciated. Lastly in terms of the advice from the book, would it be best to take away some points from the book in terms of applying this to value investing please? Such as Peter Lynch says earnings are important as when earnings increase per quarter the share price usually tracks this, so possibly choosing small cap stocks in a hot industry with growing revenues for instance please? If anyone kindly had any thoughts on this i would be forever grateful and thankful for your support it would mean the world to me.

Sending you lots of good wishes and i truly hope you become massively successful with your investing and have a wonderful and amazing life. Very best wishes to you and take care.

I’d start with a stock screener, like Yahoo’s. You can give it parameters, eg show me small caps in X industry or Y sector. You can add all sorts of metrics including some valuation ones.

Another thing you could do is look at the holdings of various small-cap trusts or funds then research the stocks further and apply your own criteria.

For example, OIG has a good track record of picking smaller UK companies and a schedule of all its investments can be found in its annual report.

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