GettyPeter Lynch, the former manager of Magellan, the once famous Fidelity mutual fund, advised people to invest in what they know. The reason is that public company investors are smarter than they used to be. Venture capitalists and public companies that would create a subsidiary -- such as CNN.com -- and sell its shares to the public knew that the bubble was poised to burst. In the book, I suggested that in the journey from idea to large public company, a CEO should pass through four stages of scaling. And that would help the sagging reputations of the venture capitalists and help the bankers they hire to take more of their portfolio companies public in the near future.

Source: Forbes May 25, 2019 14:28 UTC