Lynch emphasizes that smaller companies often outperform larger ones in terms of stock growth. He illustrates this with examples like La Quinta and Pic ’N’ Save, which have shown better returns compared to giants like GE and Sears. Lynch explains that large companies, despite their sound management and profitability, struggle to accelerate growth due to their sheer size. He states, 'There is simply no way that GE could accelerate its growth very much without taking over the world.' This insight underscores the potential of investing in smaller, agile companies that can grow rapidly within their industries. | Peter Lynch | One Up On Wall Street

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The Importance of Company Size in Stock Performance

Lynch emphasizes that smaller companies often outperform larger ones in terms of stock growth. He illustrates this with examples like La Quinta and Pic ’N’ Save, which have shown better returns compared to giants like GE and Sears. Lynch explains that large companies, despite their sound management and profitability, struggle to accelerate growth due to their sheer size. He states, 'There is simply no way that GE could accelerate its growth very much without taking over the world.' This insight underscores the potential of investing in smaller, agile companies that can grow rapidly within their industries.

-- Peter Lynch