“The great Peter Lynch – a mutual fund manager at Fidelity – turned $1 into $27 with one simple strategy,” Jason Cimpl, Research Analyst at Wyatt Investment Research, writes for Seeking Alpha. “He delivered average annual returns of 29% to investors in his fund over a 13-year period by following a very basic investment principle: Invest in what you know.”
“Information is moving fast and it’s tough to stay current – even for an analyst like myself who follows the news daily. That’s why it’s important to take the Peter Lynch strategy of investing deadly seriously,” Cimpl writes. “So you understand Apple… but let me show you why AAPL is a great stock to own ahead of its [quarterly earnings] announcement [next week].”
Cimpl writes, “First of all, despite its huge size and fast growth over the past decade, Apple is still a rapidly growing company with several smash hit products… However, AAPL also carries something else that makes it a stud investment: cash. And cash is essential in an uncertain economy. Fortunately Apple has nothing to worry about when it comes to cash. The company’s cash stockpile recently swelled to a staggering $100 billion. To put that in context, Apple’s cash position is larger than the market caps of 95% of the companies in the S&P 500.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]