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Lynch provides insight on how to achieve exceptional results

In an interview he gave to PBS, Peter Lynch discussed what is needed to achieve a track record similar to his. Even though the answer seems simple on the surface, it has many insights that are worth commenting on.

Q: Was that your secret?

A: Well, I think the secret is, if you have a lot of stocks, some will do mediocre, some will do OK, and if one or two of ’em go up big time, you produce a fabulous result. And I think that’s the promise to some people. Some stocks go up 20% to 30%, and they get rid of it, and they hold on to the dogs. And it’s sort of like watering the weeds and cutting out the flowers. You want to let the winners run. When the fun