Has Peter Lynch been widely misunderstood?

Peter Lynch misunderstoodPeter Lynch He is a true legend of value investing and investment in the stock market in general. He is one of those investors that hardly needs an introduction. He is also one of the most successful authors among small (and large) investors. In fact, his book "circle of competition. We must use our knowledge about them to analyze, study them and determine if their shares are worth buying.

Lynch gives as an example that a person working in the hospitality sector would have a greater ability to predict the success of companies such as the trap of simplicity”. In the words of Peter Lynch:

“People buy stocks without knowing anything about them. That is gambling and it is not right. "

We must not forget that Small investors have a number of advantages over large fund managers that we can take advantage of. Let's not make investing in the stock market something more complex than it is, but not something simpler than it is either.

Let's continue analyzing companies we know, looking for competitive advantages sustainable management, an honest management team and that trade below its intrinsic value with safety margin suitable. In this way, you will achieve good profitability by investing in the stock market in the long term.

I never said it was easy. What I will not tire of saying is that it is worth it.