How to Pick Good Companies to Invest In

by

Business Finance

Please read the following chapters from the Lynch book, and write a one-page summary of key points (post the summary here in attachment and also bring to class for discussion. This summary should include: key things you’ve learned (in bullet points); of the seven categories Lynch mentioned in Ch7 which one comes easiest to you and why; and do a two-minute drill of a fast-growing company you know as a preliminary candidate for investment following the example in Ch11. While reading, try to get the key ideas of each chapter without being bogged down into details. Note that even if Lynch is one of the best investors out there, we still need to exercise critical thinking and formulate a framework/approach that is best fit to our own circumstances and capabilities.

Ch7 I’ve Got It, I’ve Got It – what is it (Focus on the Fast Growers category since this is in my opinion the most accessible approach and reaps the highest returns, thus the focus of this strategic investing class).

Ch10 Earnings Earnings Earnings (Understand why is earnings so key to investment)

Ch11 The Two Minute Drill (Follow the example in capturing an investment story)