Latest News:  
Beijing   Cloudy    2 / -5   City Forecast

People's Daily Online>>Opinion

The natural way to pick your stocks

By Huang Xiangyang (China Daily)

15:07, December 15, 2011

Among all the legendary investors I like Peter Lynch the most, because his theories are simple.

Unlike other moneymaking masters who tout sophisticated principles and techniques, Lynch emphasizes the power of common knowledge and he chose many of his big winners the same way any individual investor could.

The Wall Street fund manager bought Taco Bell because he was impressed with their burrito on a trip. He bought Volvo because that's what his family and friends drove. He bought Hanes because his wife told him its pantyhose brand, L'eggs, was a favorite with women.

Rule No 1, Lynch says, is to stop listening to professionals, because any "normal person using the customary 3 percent of the brain can pick stocks just as well".

"When you try on the stockings or sip coffee, you are already doing fundamental analysis as professionals do," he says.

I was fascinated by these words and enthralled by the feeling that I could get a grip on my own financial future despite my still-to-be-proved investing skills, and that I could start anew after many losses. It was a sense of rebirth.

So I put Lynch's words into action. I sifted through Beijing Youth Daily regularly, not for the news, but for the advertisements it depends on. I started stockpiling the shares of Beijing Media after I saw a steady increase in the ad pages. Yet I have never made any money on them. The company's price nose-dived in 2005 after three of its managers were arrested on corruption charges.

【1】 【2】

We Recommend


Leave your comment0 comments

  1. Name


Selections for you

  1. Female reconnaissance element in training

  2. Wedding dress show held in Hong Kong

  3. Nearly 9 years on, US withdraws from Iraq

  4. 1st twin giraffes celebrate birthday

Most Popular


  1. Real names on Weibo points to progress
  2. China's foreign policy not a matter of tough vs. soft
  3. Growth moderation not "bad thing" for China
  4. Risks behind India's military buildup
  5. 2011: Year of government micro-blogs
  6. Chance of RMB devaluation small
  7. Narrow vision limits China's discourse power
  8. Dubai chasing Singapore's strictness with violations
  9. Too early to loosen China's property controls
  10. Do not let disputes taint Sino-Korean ties

What's happening in China

APF forest group in training

  1. Chinese website offers US food
  2. China's online video viewers tops 394 million
  3. The green tax to spur environmental protection
  4. Club Med to open second resort in China
  5. Funding for tobacco control 'inadequate'

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance