By
Jordan DiPietro
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More Articles
June 9, 2010
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Peter Lynch is renowned for overseeing Fidelity's prestigious Magellan Fund from 1977 to 1990. By the time he retired, Lynch had grown the fund's assets from a paltry $18 million to more than $10 billion. Astoundingly, he held more than 1,000 individual stock positions, and his fund averaged an annual 29.2% return over the course of his management.
Lynch is equally well-known for telling each person to "invest in what you know." In his acclaimed book One Up on Wall Street, he also laid out the blueprint for investing in various types of stocks. However, he did have a very distinct preference of his own.
Lynch stated that fast growing stocks "are among my favorite investments: small, aggressive new enterprises that grow at 20%-25% a year." While growth stocks can be risky, Lynch says that "one or two of these can make a career."
To identify Lynch's growth stocks, we used a stock screener to find companies with:
You can find similar results using the Motley Fool CAPS screener. Lastly, we enlisted the intelligence of our 165,000 member strong CAPS community by only selecting stocks that have a minimum of three stars. These stocks certainly have the potential to be market-beating fast growers, so feel free to dig a bit deeper on your own.
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Company
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Earnings Growth (3 Years)
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Revenue Growth (3 Years)
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Insider Ownership
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CAPS Rating (out of 5)
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Perfect World (Nasdaq: PWRD )
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309.7%
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136.4%
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26.9%
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****
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Commtouch Software (Nasdaq: CTCH )
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129.8%
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24.4%
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25.4%
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***
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China Fire & Security (Nasdaq: CFSG )
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39.1%
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34.3%
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88.8%
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*****
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If you've got an opinion on any of these stocks, drop a comment in the box below or come join us on CAPS, absolutely free, to learn more about these and countless other interesting stock ideas.
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