Pick The Right Type of Stock

PICK THE RIGHT TYPE OF STOCK

DBFSassociate of DOHA BANK

Disclaimer: The information provided herein is not to be constructed as an o�er to buy or sell securities of any kind. DBFS and/or its group companies do not assume any responsibility or liability resulting from the use of such information.


Knowing about the di�erent types of stocks will give you the best strategy to pick and hold the right ones. Well known investor Peter Lynch has identified basically six types of stocks namely slow growers, stalwarts, fast growers, cyclicals, turnarounds and asset plays. Know more about

these and take your first steps to the right method of creating wealth.

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SLOW GROWERS

These are stocks of established companies that are not expected to grow faster than the overall economy. They will never yield a big return on

investment, but they provide regular and large dividends.


STALWARTS

They are also stocks of large companies but with a fast growth rate of 10 – 15% of earnings. They maintain a fairly good earnings growth due to the nature of their o�erings. FMCG, Information Technology and Pharmaceutical companies are classic examples of Stalwarts.


FAST GROWERS

These are stocks of small sized companies that grow at fast pace of 20 – 25% a year. They can provide massive returns within a short span

of time, but with high risk.


CYCLICALS

Companies in this stock group usually show inconsistency in revenue growth and based on this the stock prices of such companies also vary. The earnings growth can vary from 5 -10% during loss to 18-20% during gains. Automobile, construction, metals, industrials and banking space

are examples of cyclicals.


TURNAROUNDS

They are stocks that have experienced a bad phase on the stock market, but are on the verge of rebounding. If you can identify turnaround

stocks, then you could gain great profits within a short time.


ASSET PLAYS

These stocks belong to those companies that own key assets which are mostly underrated by the market. Finding these stocks requires good knowledge of the company that owns the assets. They can turn

out to be the dark horse in the race.


Stock Market is really the place to grow your hard earned money, but without an expert assistance you will definitely fall into the maze of confusions. Invest with the expert guidance of DBFS and realise

your life’s dream of monetary success.

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Pick The Right Type of Stock

Economy & Finance

Transcript of Pick The Right Type of Stock