Course 508: Great Investors: Peter Lynch
Invest in What You Know
In this course
1 Introduction
2 Invest in What You Know
3 Seize a Good Opportunity
4 Profitability, Price, and a Good Business Model

Lynch didn't go out of his way to try to figure out a complicated industry just because it was forecasted to be hot in the coming years. He invested in industries he already understood, such as the auto industry. That’s what led him to Chrysler (today part of DaimlerChrysler DCX) back in the early 1980s. Chrysler was getting beat up by the competition and was near bankruptcy; it seemed the carmaker would never regain its footing. But after seeing prototypes of a new thing called a minivan, Lynch liked what he saw and made Chrysler one of Magellan's top holdings. It paid off, and Chrysler more than tripled in price while Magellan owned it.

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