By now you might be wondering what’s the point of investing in a stodgy old company such as IBM, GM, or U.S. Steel? There are several reasons you mig… - Peter Lynch

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By now you might be wondering what’s the point of investing in a stodgy old company such as IBM, GM, or U.S. Steel? There are several reasons you might do this. First, big companies are less risky, in that they generally are in no danger of going out of business. Second, they are likely to pay a dividend. Third, they have valuable assets that might be sold off at a profit.

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About Peter Lynch

Peter Lynch (born January 19, 1944) is an American investor, mutual fund manager, philanthropist, and author.

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Additional quotes by Peter Lynch

The combination of new equipment and new chemicals turned the American farm into the most efficient food bank on earth, capable of producing more wheat, corn, and so forth, per acre than any other country's farms in the history of agriculture.

If you find a stock with little or no institutional ownership, you’ve found a potential winner. Find a company that no analyst has ever visited, or that no analyst would admit to knowing about, and you’ve got a double winner. When I talk to a company that tells me the last analyst showed up three years ago, I can hardly contain my enthusiasm. It frequently happens with banks, savings-and-loans, and insurance companies, since there are thousands of these and Wall Street only keeps up with fifty to one hundred.

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