What? Peter Lynch is one of the great investors of all time. And much of my investing philosophy is based on his books. But you shouldn't invest like him says FatBoy. Why? Because Lynch is now investing in (gasp) penny stocks!
One of the his picks is Rainmaker Systems. When I look at the numbers, revenue has slid from 61m in 1999 to 15m in 2004. Net income has never been positive. Accordingly the stock has slid above 3 last year to like a quarter earlier this year. It would seem to me that this is a stock to avoid.
So maybe I should be saying, "I don't invest like Peter Lynch" in this situation. But I'd venture to say it's OK to invest like Peter Lynch -- if you're Peter Lynch (or Gordon Gekko)!
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