Why Peter Lynch Would Love Rocket
Famed investor Peter Lynch said that he loved great companies in lousy industries. The popular industries generally get thrown a lot of investment dollars, making it hard to make a buck. On the other hand, Lynch said, lousy industries, which are growing slowly or shrinking, generally consolidate, and the winner usually has some cost advantage.
The mortgage origination industry is currently wrapping up a couple of great years, driven by the Fed's actions to support the economy in response to the pandemic. Looking ahead, rates will rise, volumes will shrink, and companies will fold. One of the survivors will probably be Rocket (NYSE: RKT).
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Source Fool.com
