What did Peter Lynch really mean when he said buy what you know? This subject came up once again in a recent 2019 interview he had with Fox Business News. It’s a subject I’ve covered before and thought I’d put out a quick video on this and a few other things on my mind with respect to the subject matter. Your comments are welcome! ~Maj

 

  • Our Peter Lynch article (https://geoinvesting.com/lynch-dont-buy-smaller-company-stock/) “Peter Lynch Said Buy What You Know, But How Did He Mean It?”
  • Buy what you know works
  • Sometimes ignorance is better (8:20 to 8:40)
  • But still must take be careful (can take it only so far) (8:41 to 9:27)
    • Will they have staying power
      • Blockbuster Video vs Netflix, Inc. (NASDAQ:NFLX)
      • Under Armor
      • Game Stop
      • Retail
    • Still must be a smart investor
  • Do not take it too literally (Big part of my research) (9:30 to 10:20
    • Does not mean you cannot learn about new things
  • The Walking Company: A buy what you know example that I should have sold. (10.21 to 12.45)
  • One of the reasons I like microcap stocks (12:46 to 13:20)
    • Allows you to get into trendy stock early
  • Research to help beyond buy/sell what you know (13.38 to 16:14
    • When to Buy
      • Different levels
        • Shopper
          • Stay alert
          • Get them early
          • Ask questions
          • Visit companies
          • Can it be bigger in 5 or 10 years?
          • Interview management
          • Understand business models
        • When to sell (16:15 to 17:45
          • Valuation
          • Trend ending
          • Bought out
        • Buy with conviction when you have it (17:50 to 18.27)