Peter Lynch identified a number of attributes of firms that may result in favourable stock market performances, including
A) Products that are faddish, people like change.
B) Firms that have competitive advantages over their rivals.
C) Firms that can benefit from cost reductions.
D) Choices b and c
E) All of the above.

Question

Quizplus · Accepted Answer

Firms that have competitive advantages over their rivals can maintain higher profit margins and attract more customers which should benefit their stock market performance. Additionally, firms that benefit from cost reductions can have higher profit margins which may also benefit their stock market performance. Products that are faddish may provide short-term gains but are not sustainable over the long-term, so it is not always a favourable attribute for stock market performance.

Peter Lynch Identified a Number of Attributes of Firms That