Value Investing Guides
Step-by-step educational guides on valuation and research methods. Each guide pairs with a free tool on this site so you can practice immediately — no account, no live data, no advice.
From a supermarket shelf to a six-bagger
In the early 1970s Peter Lynch's wife Carolyn came home with L'eggs — pantyhose sold in plastic eggs at the supermarket checkout. Lynch noticed something the spreadsheets missed: women visited a supermarket many times more often than a department store, so the product sat exactly where the customer already was, week after week.
But the observation was only step one. Lynch did the homework: store checks, the financials of maker Hanes, and competitor tests — he even had quality comparisons run against rival brands. Convinced, Magellan bought Hanes, and the stock became roughly a six-bagger before Sara Lee acquired the company. 'Buy what you know,' he insisted, 'is where research starts — never where it ends.'
Everyday observation finds the idea; a disciplined research routine turns it into an investment.
The turnaround everyone was sure would die
In 1982 the consensus said Chrysler was finished — the stock traded near $2 amid bankruptcy talk. Lynch did the unfashionable work: the balance sheet showed over $1 billion in cash after the government loan guarantee, giving it years of runway, and meetings with management revealed the upcoming minivan line.
He made Chrysler Magellan's largest position — not a small contrarian flutter. As the new models shipped and the cycle turned, the stock rose more than tenfold over the following five years.
The crowd's verdict is not analysis. The balance sheet and the showroom said something different from the headlines.
About these guides
All guides are educational content about research methods. They use neutral examples, never real-time data, and never tell you to buy, sell, or hold anything. Always do your own research and consult a licensed professional before making investment decisions.
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