This would be the third article of our 7-part Peter Lynch Investing Playbook series. 

If you’ve missed the first part, fret not, as you can read it here: Part 1 of The Peter Lynch Investing Playbook. Don’t worry, this article would not be going anywhere so you can come back to it anytime! 

The Peter Lynch Investing Playbook is essentially a guide inspired by the book, One Up on Wall Street, where the legendary investor, Peter Lynch, revealed how his ‘amateur’ approach in managing Fidelity’s multibillion-dollar Magellan Fund led him to become one of America’s number one money managers, and, one of the most successful investors of all time. 

His thesis is simple: Amateur Investors can continue to reap exceptional rewards from mundane, easy-to-understand companies they encounter in their daily lives. 

There are different types of stocks and Peter Lynch classifies them into 6 general categories. He’s found that these 6