Categorisation of different types of investment ideas

• Slow Growers – aging companies growing slightly faster than GDP. Usually bought for their dividends and buybacks.
• Stalwarts – large quality companies that are profitable and are growing slightly faster than slow growers.
• Cyclicals – A company whose sales and profits rise and fall in a regular if not completely predictable fashion.
• Fast Growers – Small, aggressive new enterprises growing at 20-25% per year
• Turnarounds – Battered bruised and possibly in or facing bankruptcy. The performance of these stocks is largely uncorrelated with the broad market.
• Asset Plays –A company that’s sitting on something valuable that the market has overlooked, for example real estate

- Peter Lynch - Author of One up on the Wall Street