Picking Winners - Part 5

Lynch 在這部份介紹了選擇公司的一些重點，以下是這部份的一些扼要；
1. Understand the nature of the companies you own and the specific reasons for holding the stock.
2. By putting your stocks into categories you'll have a better idea of what to expect from them.
3. Carefully consider the p/e ratio. If the stock is grossly over-priced, even if everything else goes right, you won't make any money.
4. Find a story line to follow as a way of monitoring a company's progress.
5. Look for small companies that are already profitable and have proven that their concept can be replicated.
6. Avoid hot stocks in hot industries.
7. It's better to miss the first move in a stock and wait to see if a company's plans are working out.
8. Moderately fast growers (20 to 25 percent) in nongrowth industries are ideal investments.
9. A lot of money can be made when a troubled company turns around.
10. Carefully consider the p/e ratio. If the stock is grossly over-priced, even if everything else goes right, you won't make any money.
11. Be patient. Watched stock never boils.
12. When in doubt, tune in later.