{"id":37997,"date":"2025-07-02T14:00:00","date_gmt":"2025-07-02T06:00:00","guid":{"rendered":"https:\/\/www.tejwin.com\/?post_type=insight&#038;p=37997"},"modified":"2025-09-08T15:15:18","modified_gmt":"2025-09-08T07:15:18","slug":"implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value","status":"publish","type":"insight","link":"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/","title":{"rendered":"Implementing Peter Lynch\u2019s Investment Philosophy: A Quantitative Strategy Combining Growth and Value"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full caption-align-center\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1182\" height=\"774\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.44.52-1-2.png\" alt=\"Stock-Picking Philosophy\" class=\"wp-image-37998\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.44.52-1-2.png 1182w, https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.44.52-1-2-300x196.png 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.44.52-1-2-1024x671.png 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.44.52-1-2-150x98.png 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.44.52-1-2-768x503.png 768w\" sizes=\"(max-width: 1182px) 100vw, 1182px\" \/><figcaption class=\"wp-element-caption\">Photo by<a href=\"https:\/\/unsplash.com\/@blankerwahnsinn?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" target=\"_blank\" rel=\"noopener\"> <\/a><a href=\"http:\/\/jeshoots.com\/\" target=\"_blank\" rel=\"noopener\">JESHOOTS.COM<\/a> on<a href=\"https:\/\/unsplash.com\/photos\/pink-pig-figurine-on-white-surface-pElSkGRA2NU?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\" target=\"_blank\" rel=\"noopener\"> Unsplash<\/a><br><\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e0cd44453ba\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e0cd44453ba\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#Preface\" >Preface<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#From_Philosophy_to_Practice_Testing_Peter_Lynchs_Strategy_in_Taiwans_Stock_Market\" >From Philosophy to Practice: Testing Peter Lynch\u2019s Strategy in Taiwan\u2019s Stock Market<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#Quantitative_Strategy_Design\" >Quantitative Strategy Design<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#Screening_Criteria_based_on_Peter_Lynchs_GARP_principles\" >Screening Criteria (based on Peter Lynch\u2019s GARP principles):<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#1_Latest-quarter_Debt_Ratio_%E2%89%A4_25\" >1. Latest-quarter Debt Ratio \u2264 25%<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#2_Net_Cash_per_Share_%3E_Industry_Average\" >2. Net Cash per Share &gt; Industry Average<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#3_Price-to-Free-Cash-Flow_PFCF_%3C_Industry_Average\" >3. Price-to-Free-Cash-Flow (P\/FCF) &lt; Industry Average<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#4_Inventory_Growth_%3C_Revenue_Growth\" >4. Inventory Growth &lt; Revenue Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#5_1-Year_Average_EPS_Growth_Dividend_Yield_PE_%E2%89%A5_2\" >5. (1-Year Average EPS Growth + Dividend Yield) \/ P\/E \u2265 2<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#Performance_Review_Can_Lynchs_Strategy_Deliver_in_Taiwan\" >Performance Review: Can Lynch\u2019s Strategy Deliver in Taiwan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tejwin.com\/en\/insight\/implementing-peter-lynchs-stock-picking-philosophy-a-quantitative-strategy-combining-growth-and-value\/#Further_Reading\" >Further Reading<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preface\"><\/span>Preface<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Peter Lynch is a legendary figure in the American mutual fund industry. From 1977 to 1990, he served as the manager of the Fidelity Magellan Fund, during which time the fund\u2019s assets grew from $20 million to $14 billion, achieving an impressive annualized return of 29.2%. He is widely regarded as one of the most successful fund managers in history. Beyond his remarkable performance, Lynch is also known for his accessible investment philosophy, which has inspired countless individual and professional investors.<\/p>\n\n\n\n<p>Lynch advocates the principle of \u201c<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">invest in what you know<\/mark><\/strong>,\u201d believing that individual investors have the advantage of observing the world around them and can often identify promising companies before their <a href=\"https:\/\/www.tejwin.com\/en\/solution\/fundamental-data\/\" data-type=\"link\" data-id=\"https:\/\/www.tejwin.com\/en\/solution\/fundamental-data\/\"><strong>fundamentals<\/strong><\/a> are reflected in stock prices. He also emphasizes that stock selection should be based on a company\u2019s profitability, growth potential, and <a href=\"https:\/\/www.tejwin.com\/en\/solution\/financial-data\/\" data-type=\"link\" data-id=\"https:\/\/www.tejwin.com\/en\/solution\/financial-data\/\"><strong>financial<\/strong><\/a> stability. Using indicators such as the price-to-earnings (P\/E) ratio and earnings per share (EPS) growth, Lynch aimed to uncover <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">\u201cundervalued growth stocks<\/mark><\/strong>.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"From_Philosophy_to_Practice_Testing_Peter_Lynchs_Strategy_in_Taiwans_Stock_Market\"><\/span><strong>From Philosophy to Practice: Testing Peter Lynch\u2019s Strategy in Taiwan\u2019s Stock Market<\/strong><br><p data-start=\"225\" data-end=\"760\"><\/p><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Peter Lynch\u2019s investment philosophy\u2014buying companies with solid fundamentals, can his strategy be effectively applied in Taiwan&#8217;s market environment?<br>To explore this, we translate his core principles into a systematic screening approach and apply it to a broad universe of Taiwan-listed stocks using TEJ\u2019s<mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"> <\/mark><a href=\"https:\/\/www.tejwin.com\/en\/news\/quantitative-investment\/\" data-type=\"link\" data-id=\"https:\/\/www.tejwin.com\/en\/news\/quantitative-investment\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">point-in-time quantitative database<\/mark><\/strong><\/a>. Below is a breakdown of our investment universe, data preparation, screening logic, and portfolio construction:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Quantitative_Strategy_Design\"><\/span>Quantitative Strategy Design <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Stock Pool\uff1a<\/strong>All stocks listed on the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx) are included.<\/li>\n\n\n\n<li><strong>Data Period<\/strong>\uff1aFrom 2017 to 2025<\/li>\n\n\n\n<li><strong>Backtesting Period<\/strong>\uff1a Jan 1, 2018 to Apr 29, 2025<\/li>\n\n\n\n<li>Qualified stocks are <strong>equally weighted<\/strong> and rebalanced <strong>every 30 trading days<\/strong> to reflect the most updated financial data.<\/li>\n\n\n\n<li><strong>Data Source<\/strong>\uff1aExtract the necessary data for Peter Lynch\u2019s stock selection criteria, such as stock prices, financial reports, and insider ownership <a href=\"https:\/\/www.tejwin.com\/en\/solution\/financial-data\/\" data-type=\"link\" data-id=\"https:\/\/www.tejwin.com\/en\/solution\/financial-data\/\"><strong>TEJ Financial Data<\/strong><\/a> and <a href=\"https:\/\/www.tejwin.com\/en\/solution\/market-data\/\" data-type=\"link\" data-id=\"https:\/\/www.tejwin.com\/en\/solution\/market-data\/\"><strong>TEJ Market Data<\/strong><\/a><\/li>\n\n\n\n<li><strong>Simulation Method<\/strong>\uff1athe criteria below are used to screen eligible stocks. The selected stocks are equally weighted in the portfolio and held until the next rebalancing date<\/li>\n\n\n\n<li><strong>Rebalancing Dates\uff1a<\/strong>this strategy is designed to review and adjust the portfolio every 30 days.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-background\" style=\"background-color:#ffe9ae\"><em>\ud83d\udccc All data undergoes cleaning and standardization to eliminate survivorship bias, forward-looking errors, and incomplete entries<\/em> by <strong><em><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/www.tejwin.com\/en\/news\/quantitative-investment\/\" data-type=\"link\" data-id=\"https:\/\/www.tejwin.com\/en\/news\/quantitative-investment\/\">TEJ Quantitative Investment Database<\/a><\/mark><\/em><\/strong><\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Screening_Criteria_based_on_Peter_Lynchs_GARP_principles\"><\/span><strong>Screening Criteria (based on Peter Lynch\u2019s GARP principles):<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The core of Peter Lynch\u2019s stock-picking philosophy lies in identifying companies that exhibit both growth and value characteristics, rather than relying on market timing or macroeconomic forecasts. His investment approach emphasizes deeply understanding individual businesses\u2014what he called \u201ckicking the tires\u201d\u2014and using fundamental analysis to identify attractive investment opportunities. To translate his philosophy into a concrete framework, this strategy transforms Lynch\u2019s core financial principles into five quantitative screening criteria:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Latest-quarter_Debt_Ratio_%E2%89%A4_25\"><\/span><strong>1. Latest-quarter Debt Ratio \u2264 25%<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Excessive leverage is often the source of financial risk for companies. Lynch stressed investing in financially sound firms to reduce debt repayment pressure during economic downturns or interest rate hikes. By setting a maximum debt ratio (total liabilities \/ total assets) of 25%, the strategy filters out highly leveraged firms and ensures that selected stocks possess strong solvency and long-term viability.<br><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Net_Cash_per_Share_%3E_Industry_Average\"><\/span>2. Net Cash per Share &gt; Industry Average<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A company\u2019s cash level reflects its short-term liquidity and operational flexibility. Lynch favored companies with ample cash reserves that could comfortably manage long-term liabilities. This strategy uses net cash per share as the metric and requires it to be above the industry average, highlighting firms with stronger capital structures and greater flexibility in operations.<br><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Price-to-Free-Cash-Flow_PFCF_%3C_Industry_Average\"><\/span>3. Price-to-Free-Cash-Flow (P\/FCF) &lt; Industry Average<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Lynch valued a company\u2019s ability to generate real cash over its accounting profits. This strategy evaluates valuation using the price-to-free-cash-flow ratio (stock price divided by free cash flow per share, where free cash flow is operating cash flow minus capital expenditures). A lower P\/FCF than the industry average suggests the company is undervalued despite strong cash-generating ability\u2014an ideal candidate for value investing.<br><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Inventory_Growth_%3C_Revenue_Growth\"><\/span>4. Inventory Growth &lt; Revenue Growth<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Operational efficiency is another key criterion in Lynch\u2019s stock selection. If inventory grows faster than revenue, it may indicate weak sales or declining demand. Conversely, when revenue outpaces inventory growth, it suggests sound sales performance and effective inventory management. This condition helps identify financially healthy firms with low inventory risk.<br><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_1-Year_Average_EPS_Growth_Dividend_Yield_PE_%E2%89%A5_2\"><\/span>5. (1-Year Average EPS Growth + Dividend Yield) \/ P\/E \u2265 2<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This strategy combines a company\u2019s 1-year average net income growth rate and dividend yield, then divides the sum by its price-to-earnings ratio (P\/E). A result of 2 or above is required. This criterion ensures that only companies with strong earnings growth, stable dividends, and reasonable valuations are included in the portfolio.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Performance_Review_Can_Lynchs_Strategy_Deliver_in_Taiwan\"><\/span>Performance Review: Can Lynch\u2019s Strategy Deliver in Taiwan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We backtested the strategy from January 2018 to April 2025 to evaluate how Peter Lynch\u2019s investment philosophy performs in the Taiwan market. The results suggest that a growth-at-reasonable-price (GARP) approach can indeed generate solid long-term returns when applied with disciplined screening.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes has-medium-font-size\"><table><thead><tr><th><strong>Performance Metric \/ Strategy<\/strong><\/th><th class=\"has-text-align-right\" data-align=\"right\"><strong>Market (Benchmark)<\/strong><\/th><th class=\"has-text-align-right\" data-align=\"right\"><strong>Peter Lynch-Inspired Strategy<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Annualized Return<\/strong><\/td><td class=\"has-text-align-right\" data-align=\"right\">13.598%<\/td><td class=\"has-text-align-right\" data-align=\"right\">15.508%<\/td><\/tr><tr><td><strong>Cumulative Return<\/strong><\/td><td class=\"has-text-align-right\" data-align=\"right\">145.974%<\/td><td class=\"has-text-align-right\" data-align=\"right\">176.705%<\/td><\/tr><tr><td><strong>Annualized Volatility<\/strong><\/td><td class=\"has-text-align-right\" data-align=\"right\">18.44%<\/td><td class=\"has-text-align-right\" data-align=\"right\">21.49%<\/td><\/tr><tr><td><strong>Sharpe Ratio<\/strong><\/td><td class=\"has-text-align-right\" data-align=\"right\">0.78<\/td><td class=\"has-text-align-right\" data-align=\"right\">0.78<\/td><\/tr><tr><td><strong>Calmar Ratio<\/strong><\/td><td class=\"has-text-align-right\" data-align=\"right\">0.48<\/td><td class=\"has-text-align-right\" data-align=\"right\">0.55<\/td><\/tr><tr><td><strong>Maximum Drawdown During Period<\/strong><\/td><td class=\"has-text-align-right\" data-align=\"right\">-28.553%<\/td><td class=\"has-text-align-right\" data-align=\"right\">-28.022%<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><em>Backtesting results of Peter Lynch\u2019s Strategy in Taiwan stock market<\/em><\/figcaption><\/figure>\n\n\n\n<p>Compared to the benchmark, the strategy shows consistent outperformance while maintaining a moderate correlation with the broader market. Though it experiences market fluctuations, the selected stocks demonstrate strong recovery momentum, thanks to solid fundamentals and valuation support.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full caption-align-center\"><img decoding=\"async\" width=\"1270\" height=\"780\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.58.18-2.png\" alt=\"Peter Lynch\u2019s Strategy in Taiwan\u2019s Stock Market\" class=\"wp-image-38002\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.58.18-2.png 1270w, https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.58.18-2-300x184.png 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.58.18-2-1024x629.png 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.58.18-2-150x92.png 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/\u622a\u5716-2025-06-17-\u4e0b\u53482.58.18-2-768x472.png 768w\" sizes=\"(max-width: 1270px) 100vw, 1270px\" \/><\/figure>\n\n\n\n<p>The equity curve reveals stable upward growth over time, and the drawdown chart confirms that the portfolio remains resilient even during market corrections.<\/p>\n\n\n\n<p>\u26a0\ufe0f Disclaimer: This analysis is for reference only and does not constitute investment advice.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 has-custom-font-size\" style=\"font-size:22px\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/www.tejwin.com\/en\/databank-solution\/financial-data\/\" style=\"border-radius:16px;background:linear-gradient(135deg,rgb(243,224,131) 0%,rgb(102,197,166) 50%,rgb(51,132,181) 100%)\"><strong>Access to Comprehensive Quantitative Data<\/strong><br><strong>Start Building Portfolios That Outperform the Market Today!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:22px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center\" style=\"font-size:32px\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong><em>&#8220;Taiwan stock market data, TEJ collect it all.&#8221;<\/em><\/strong><\/mark><\/p>\n\n\n\n<p>The characteristics of the Taiwan stock market differ from those of other European and American markets. Especially in the first quarter of 2024, with the <strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#c05d5d\" class=\"has-inline-color\">Taiwan Stock Exchange reaching a new high of 20,000 points<\/mark><\/strong> due to the rise in TSMC&#8217;s stock price, global institutional investors are paying more attention to the performance of the Taiwan stock market.&nbsp;<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#0978b8\" class=\"has-inline-color\">Taiwan Economical Journal (TEJ)<\/mark><\/strong>, a financial database established in Taiwan for over 30 years, serves local financial institutions and academic institutions, and has long-term cooperation with internationally renowned data providers, providing high-quality financial data for five financial markets in Asia.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><mark style=\"background-color:#ebc766\" class=\"has-inline-color has-black-color\">Complete Coverage<\/mark><\/strong>: Includes all listed companies on stock markets in Taiwan, China, Hong Kong, Japan, Korea, etc.&nbsp;<\/li>\n\n\n\n<li><strong><mark style=\"background-color:#ebc766\" class=\"has-inline-color\">Comprehensive Analysis of Enterprises<\/mark><\/strong>: Operational aspects, financial aspects, securities market performance, ESG sustainability, etc.&nbsp;<\/li>\n\n\n\n<li><strong><mark style=\"background-color:#ebc766\" class=\"has-inline-color\">High-Quality Database<\/mark><\/strong>: TEJ data is cleaned, checked, enhanced, and integrated to ensure it meets the information needs of financial and market analysis.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>With TEJ&#8217;s assistance, you can access relevant information about major stock markets in Asia, such as securities market, financials data, enterprise operations, board of directors, sustainability data, etc., providing investors with timely and high-quality content. Additionally, TEJ offers advisory services to help solve problems in theoretical practice and financial management!<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 has-custom-font-size\" style=\"font-size:21px\"><a class=\"wp-block-button__link has-background has-text-align-center wp-element-button\" href=\"https:\/\/www.tejwin.com\/en\/contact\/\" style=\"border-radius:16px;background:linear-gradient(135deg,rgb(160,209,216) 0%,rgb(51,145,181) 50%,rgb(50,95,191) 100%)\"><strong>Want to Learn More About Our Databases and Solutions?<br>Contact Us and Get the Free Trial Today!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Further_Reading\"><\/span>Further Reading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.tejwin.com\/en\/insight\/the-wisdom-of-blue-chip-stocks\/\">The Wisdom of Blue-Chip Stocks: Howard Rosman\u2019s Prudent Path to Wealth<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.tejwin.com\/en\/insight\/charles-brandes-value-investing-principles-building-a-portfolio-with-a-margin-of-safety-nemo\/\">Charles Brandes\u2019 Value Investing Principles : Building a Portfolio with a Margin of Safety<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.tejwin.com\/en\/insight\/from-business-cycle-indicators-to-asset-rotation-a-quantitative-strategy-to-avoid-bear-markets\/\">From Business Cycle Indicators to Asset Rotation: A Quantitative Strategy to Avoid Bear Markets<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discover how Peter Lynch\u2019s legendary investment philosophy can be applied to Taiwan\u2019s stock market. This article builds a quantitative GARP strategy using TEJ data to identify undervalued growth stocks\u2014and tests its performance over seven years.<\/p>\n","protected":false},"featured_media":37998,"template":"","tags":[3176,3421,2997,3169,3160,2537],"insight-category":[690,50,1356],"class_list":["post-37997","insight","type-insight","status-publish","has-post-thumbnail","hentry","tag-python-2","tag-quantitative-strategy","tag-stock-picking","tag-tej-2","tag-tej-api-2","tag-2537","insight-category-data-analysis","insight-category-fintech","insight-category-tquant-lab-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/37997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":9,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/37997\/revisions"}],"predecessor-version":[{"id":38931,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/37997\/revisions\/38931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/media\/37998"}],"wp:attachment":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/media?parent=37997"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/tags?post=37997"},{"taxonomy":"insight-category","embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight-category?post=37997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}