Concept · Investment & Valuation

Invest in What You Know

Origin: Peter Lynch

Biological Parallel

Cleaner fish like wrasses establish 'cleaning stations' on specific reefs, learning every client fish's tolerance for discomfort, preferred cleaning locations, and schedules. This intimate knowledge of their micro-niche creates competitive advantage—generalist cleaners can't match their client-specific expertise. The specialization pays: repeat clients seek them out, and predators protect the stations. Lynch's 'invest in what you know' mirrors this: deep domain familiarity reveals insights that generalist analysts miss, creating information advantages in specific sectors.