Most millionaires invest in stocks

But they don't teach you how to research companies in school

So let me break it down for you

Using the strategy of the most successful fund manager of all time:

Mr. Peter Lynch managed the Magellan fund, averaging a 29% yearly return

This makes him the most successful fund manager of all time.

He strongly believes that anyone has the ability to outperform the market

Here's an insight into his own, winning research strategy...

First, Mr. Lynch categorises the stock he's researching to determine if it's a:

- Slow Grower ($PFE, $WMT)
- Stalwart ($KO $PG)
- Cyclical ($GM $AAL)
- Fast Grower ($MELI $TSLA)
- Turnaround ($FCAU $F)
- Asset Play ($MCD)

For each, there are differing factors to consider...

For all of the above, there are general fundamentals & stats to look at
These are:

- PE ratio: is it high or low for this company & for similar companies in the industry
- % of institutional ownership: The lower the better
- % of insiders buying: The higher the better

Cont...

- Record of earnings growth: are they consistent or sporadic (less important for asset plays)
- Balance sheet strength: debt to equity ratio
- Cash position: Cash per share, is there a floor price?

Once you've checked these out, check the following for the specific category...