October 1982 TV debut of Peter Lynch.

Buy What You Know
“Average investor is out there in some industry…and they’re going to see those industries turn and they’re not going to buy those stocks…they have a big edge… they are months ahead of me”

Common mistake..buying a stock as it has fallen from X to two thirds or half of X. Beware bottom fishing

Peter Lynch nails the edge most amateur investors enjoy, but seldom capitalise on. Most people have an edge in the industry they work in. Funny thing is most of the money is controlled by people who work in another industry. Another funny thing is financial planners and common diversification wisdom instruct people not to invest in their industry and definitely not in their companies.

I’m not sure if I’ve seen that video before or read something along the same lines, but I sit here as testament to that advice.

Related posts:

1. Lynch, SAP and my first Option Play
2. Wait for Profits