It’s always good to learn something new from blog reading. Those scraps of information are like bread crumbs which can lead me to discover more interesting stuff about investing – to know what I don’t know. As the saying goes, danger lies when you don’t know what you don’t know.
Stalwart – simi lai?
“Stalwart is a term popularized by legendary stock picker Peter Lynch to describe a large, well-established company that still offers long-term growth potential. ”
“In addition to a strong balance sheet, one of Lynch’s key measures for a stalwart company is the P/E growth ratio (PEG), which is calculated by dividing the company’s price-to-earnings (PE) ratio by its earnings growth rate. Lynch determined that PEGs below 1.0 were an indication of an underpriced stock relative to its growth rate. He considered stocks with PEGs below 0.5 to be a real bargain. For dividend-paying companies, he factored in the dividend yield to arrive at a yield-adjusted PEG ratio. Wal-Mart is often cited as an example of Lynch’s stalwart methodology.” …