"Buying what's hot without doing your research isn't investing. It's gambling." - Peter Lynch

Heard of Peter Lynch? He is the vice chairman of Fidelity Management and Research Company, USA. He is also the author of the bestsellers One Up on Wall Street, Beating The Street, Learn to Earn - books that introduce laymen to the confounding world of investment and business.

Regarded as the guru of growth investing, Lynch believes that it is possible for an investor to identify great stocks long before the market does, by using his intuition, intelligence, reflection and perseverance.

It is always wise to research companies and zero in on those whose products and services are top-of-the line. It may yield winners that beat the market. Peter Lynch advocates the "schoolboy approach" of stock picking. That is, investing in stocks one is familiar with.

Here is his road map for the investor:

• The stock market isn't really a gamble, as long as you pick good companies that you think will do well and not just because of their stock price.
  
  
• You can make a lot of money from the stock market, but you can lose a lot of money as well.
  
  
• You can lose money in a very short time but it takes a long time to make money.
  
  
• You have to research a company before you put your money on it.
  
  
• When you invest in the stock market you need to diversify.
  
  
• Never fall in love with a stock, always have an open mind.
  
  
• Buying stocks in utility companies is good, as it gives you a higher dividend.
  
  
• Just because a stock has gone down, it does not mean it can't go any lower.
  
  
• You should not buy a stock just because it is cheap.
  
  
• Over the long run, it's better to buy stocks of smaller companies.
  
  
  
  Lynch, with shrewd foresight bought companies, which operated in industries that others considered 'lousy'. These eventually became "blossoms in the desert." The last laugh was his.

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