He may take notice however if most managers are selling most of their shares. This is because rewarding shareholders becomes a priority when management owns a large amount of its company’s stock.Ĭonversely, Lynch is careful not to overreact to insider selling as this can occur for a variety of reasons. He views company share buybacks and high employee and executive stock ownership as a positive signal. All this even if it is a no-growth industry. He likes companies that have a niche, where people must keep buying its product and service, and is a user of technology. He likes companies that institutions do not own, and analysts do not follow. Peter Lynch likes companies that sound dull, ridiculous, boring, depressing or unappealing.
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