1 Strategy for Higher Returns

Before you go, we thought you'd like these...
Before you go close icon

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

Peter Lynch has some great advice on how investors can generate higher returns: Let your winners run. It may sound simple, but it's very, very hard to do. The human brain is not wired for this behavior. Investors tend to sell their winners too soon, fearing they will lose profits. Fluctuations in the market also cause investors to sell at the wrong time. But what do the big winners all have in common? They did it over long stretches of time. Companies such as Monster Beverage, Intuitive Surgical, and priceline.com have been big winners over the past 10 years. In John and David's 10-Bagger portfolio, they have two companies they plan to hold for years and years, regardless of the ups and downs. The first in LinkedIn, which is going to change the way people manage their careers. The other is Google. No company will have more influence on the digital age than Google. And our Fools want to be there every step of the way.

We all would like to build long-term wealth and retire well. In our free report "3 Stocks That Will Help You Retire Rich," we reveal some stocks that could help you achieve your financial goals. Click here to keep reading.

The article 1 Strategy for Higher Returns originally appeared on Fool.com.

David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Google. The Motley Fool owns shares of Google, Intuitive Surgical, LinkedIn, and priceline.com. Motley Fool newsletter services recommend Google, Intuitive Surgical, LinkedIn, Monster Beverage, and priceline.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners