By firstname.lastname@example.org (Singapore Man of Leisure)
During my time “anyhow hantam” stocks from 1999 onwards, Peter Lynch’s books were the rage. Everyone was Peter Lynch this, Peter Lynch that.
Retail investors were enamoured with the fabled 10 baggers.
Which makes sense. It was a time of outsized growth and multi-baggers in technology stocks! Tech is it!
No one were mentioning Warren Buffett… Warren Buffett who?
Peter Lynch had a simple and quite useful classification of stock plays:
1. Slow growers
2. Fast growers
6. Asset plays
No, I’m not going to explain what those mean. You go read the book yourself!
(Or read other blogs who love to provide summaries on summaries of a book. If you photocopy a photocopy of a photocopy of an original, what do you get?)
Its more fun to apply the above 6 stock classifications into real Singapore stocks which quite a lot of old timer Singaporean retail investors like to own.
Let’s take SPH, ComfortDelgro, and SingPost.
10 or 15 years ago, these 3 stocks can be classified as either Slow growers or Stalwarts right?
Retail investors include them into their portfolios to add stability and enjoy the dividends as income. Even when there were big tsunami waves as in 1997 …read more