Beating the Street
Peter Lynch has immortalized years of sound investment advice in his bestselling book, (Simon & Schuster; 1994). Physician-investors seeking a comfortable retirement might want to consider the following "Peter's Principles":
Know your stuffâ€”Pick companies or industries you understand. This gives you an edge to outperform the experts.
Treat stocks like childrenâ€”Have only as many as you can handle. Five companies in your portfolio is a good number.
Acquire patience before buying stockâ€”A slow runner on which you spend $2000 may lose you $2000, or it may earn you $50,000 over time.
Build good panic controlâ€”Ignore negative predictions. Sell only when a company's fundamentals fail. If you panic easily, keep your money in the bank.
Play the long runâ€”Well-picked stocks constitute a portfolio that outperforms bonds or money market accounts.