Thursday, February 26, 2009

Identifying businesses for your portfolio

Identifying businesses for your portfolio
If you’ve read Mr. Town’s book you are familiar with the terms such as ROIC, Equity Growth Rate, and EPS Growth Rate. So how do you find the businesses in which to invest? The best way to get started is to invest in what you know. Peter Lynch, former manager of Fidelity’s Magellan Fund is one of the most well-known advocates of this strategy. The book is One Up On Wall Street : How To Use What You Already Know To Make Money In The Market by Peter Lynch and John Rothchild.