Good day fellow investors, how the heck did he do it? Peter Lynch, who was fund manager at Magellan from 1977 till 1990 for 14 years, achieved a yearly return of 29%. If you invested 1000 when he started, after 14 years you would have 28,000. In this video I'll go through 8 rules for success that I have derived from learning about Peter Lynch in order to learn how to replicate the same, how to get to those 30% per year. The rules are pretty simple, straightforward as Peter Lynch is everybody can apply them, so let's immediately dig into them. You only need a few good stocks in your lifetime and that's it. So Peter Lynch says that what most investors do is sell stocks after 20-30% gain instead of holding them for very, very long periods. Apple's stock in 2006 was trading at $9. Now it's above 150. Just a few investors like that and you're set for life. So if you have a long-term view and you like to pick great, excellent investments that have the potential to be huge, Amazon will grow further, Alibaba, all those stocks, where will those stocks be in 15 years? Pick a few of them if just one does well of the five you pick, you'll have an extremely good return. Picking great stocks and holding to them is good, but the second message is the person that turns the most stones wins. So the more stocks you look at the better you will be at finding those ones that will give you huge returns in the long term. If you turn around 100 stones, 100 stocks you will find one. If you turn around 1000 you will find 10 and of those 10 one will be something amazing and then you buy that one out of 1000. The more you research, the more you learn, the higher your knowledge is, the lower is your risk, the higher is your return. So really hard, hard, hard work. For the 14 years at Magellan, Peter Lynch was working for more than 15 hours a day for six days in a week. And then after 14 years he retired because the rhythm was too strong for him for his health and he decided to look slow down a little bit. Nevertheless, now we have the internet. 40 years ago, Peter Lynch had to sit at the conference call for an hour. He had to call people go there to get the financial reports. Now you can get everything in one second from your computer desk. So we have a huge advantage and we really should dig into tens of thousands of stocks to find a few good investments. Buy what you know. Many misunderstand this advice. Thinking, oh I like Starbucks, I like their coffee, let's buy Starbucks. Lynch is discussing, buy what you know to stay in your area of specialty. So for example, if you are working in the steel industry, in the car manufacturing industry, really try to dig into that area, what is going on, what is your company ordering, what are they looking into, what technologies, and then find such a stock that fits what you have found from your inner specialty. When you find something like that, the market will usually recognize it in the next six months a year, two years. But take advantage of what you know. If you have sent a lot of surprises, stocks are really predictable over 20 year periods. In the next year too, you can flip a coin as with where stocks will go up and down. Even if now everybody thinks stocks will go up, but Lynch says that if you take a long turn approach to investing, you can know where you will get. And we have seen Jack Bogl saying 4% is the return from stocks you can expect now. So if you are not happy with 4%. You have to look for better stocks. All else equal investing the company with fewer color pictures on their annual report. Every CEO is a marketing guy. His job is to sell you the stock so that the stock price goes higher. So you have to really be careful about buying into flashy companies that don't have really tangible value behind them. Again going back to the research part, the more you do, the better you will fare. And even analysts are bored. It is time to start buying. So when everybody is bored, when everybody capitulated in a sector, then it's time to start buying. A sector that I think everybody is bored now, nobody likes to discuss and even analysts I think have their heads full of it and are running away from that is Uranium. So please subscribe as I'll be soon looking at Uranium investments, more in detail to see if there is a margin of safety that's low risk and we all know the future potential with all the reactors coming online in the next decades. Owning stocks is like having children. Don't get involved in more than you can handle. So Lin says, each do it yourself investor should follow 8-12 stocks, not more, and own 5 of them in their portfolio and rebalance accordingly or hold them for the very, very long term. Doing more, you are just doing what the market is doing and you will probably perform as the market, then better buy an index fund and leave it to grow by itself. So in general to conclude about Peter Lynch, do a lot of research, do even more research by when things are cheap and stick for them to the long term until the venue unlocks. Very simple, he invested in lots of sectors, waited for them to be cheap, bought them and then sold them high. It looks easy, however you need to have a very, very strong mind to follow. Keep watching as we constantly discuss investing strategies, analyze stocks and discuss personal finance. Thank you for watching and I'll see you in the next video.