Buying cheap and selling dear is always a good strategy, and Mr. Market keeps offering us plenty of opportunities to do so, even with durable, established, and widely followed businesses. Peter Lynch calls these companies “stalwarts.” They are the big companies without a lot of high growth potential. Occasionally, however, you can buy them at a discount and sell them after a 30 percent to 50 percent rise, which largely comes from the valuation multiple reverting back to the mean, as opposed to the business value increasing. Always remember: stock prices randomly fluctuate every day, sometimes
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