According to Compounding Quality, Peter Lynch selects stocks using a 12-point strategy that emphasizes strong fundamentals, consistent earnings growth, reasonable valuations, and low debt. Key trading takeaways include focusing on companies with competitive advantages, simple business models, and clear growth trajectories. Lynch avoids hot stocks and prefers those with insider ownership, stable cash flow, and low institutional ownership, which can signal underappreciated value. Traders can apply these principles to identify undervalued equities with breakout potential, particularly those resistant to market volatility. Source: Compounding Quality on Twitter, June 16, 2025.