One Up On Wall Street: How to Use What You Already Know to Make Money in the Market
well, hello! do you like my suit? i like yours! where'd you get it?! well, today i am dressed up like a business man because we are going to be reviewing a real business man's book! yep, you guessed it, you wily little bitch, that business man is the great peter lynch, not to be confused with the act of lynching which was a form of extreme racism that took place throughout the south during the early years of the civil rights movement! lol! ok let's go!
many people ...more
Peter Lynch was the greatest mutual fund investor of all time growing his Magellan fund to over $1 billion. His investment style is a combination of growth and value investing, so called GARP--growth at a reasonable price.
While he made most of the money in big cap stocks like Wal-Mart or turnarounds like Volvo, Ford and Chrysler, he loved investing in small caps. This book cove ...more
The book is a fun read and gives novices, such as myself, some basic fundamentals and concepts before we rush in (again) to lose our money (again) while the big boys rake all the profits (again) in the casino we all know as the stock market. There is no speci ...more
I didn't read this when it first came out, but now with updated prologue it does provide some amusing tidbits. This man still uses the phrase dot com. Goodness me! I really have no idea how he has managed to avoid the internet all these decades, but that seem ...more
Peter Lynch is a nice guy who talks in a relaxed way about picking stocks, providing numerous examples of his investments that failed as well as the occasional "multibagger" successes that returned ten times or ...more
The central theme is that if you want to be successful in stocks, you have to find your edge. This is a point that many other classics skip over, instead jumping straight into the analytical techniques. Lynch continually emphasises the importan ...more
Lynch takes a great deal of time persuading the reader that the average man on the street has an advantage over the Wall Street analysts tucked away in their ivory towers.
He suggests playing to one’s strengths, using whatever specialist knowledge we have gathered to work out if a company is likely to see changes in earnings. Even our experiences as consumers can be quite telling, and may offer clues about the direction in which a company might be going.
It sets up your mind regarding how to choose companies that have the potential to become great.
It gives a good introduction on reading the balance sheets and you don't need any prior knowledge for understanding the views. But more than balance sheets it suggests us to pay attention to the world around to find the right stocks
Peter Lynch was a genius of his time. His detractors can argue the reasons WHY he was successful (luck, timing, etc.) but it is hard to argue with the fact that he was immensely successful.
In this now famous book, Peter describes how he came about developing his strategy for success. He talks about his past, his victories, and some of his failures. He describes everything that happened in an easy to read, colloquial sort of way. Anyone, inc ...more
Peter Lynch does an awesome job in splitting stocks into 6 categories (slow ,fast growers, stalwarts, cyclicals,turnarounds and asset plays).
After separating them , he goes on explaining what to expect from that category and what indi ...more
It also helps that the author is at times funny and most of the times makes the content easier to read for people with not much knowledge of economics and finance. ...more
Your next door neighbors claim to know it. The Youtube channel you have subscribed for investment advices claim to know it. The guy you are friend with claims to know it. But when asked what exactly is the fundamentals of investing, all you get is a friendly slap on the back and the topic diverts.
But this book finally answers your long awaited question.
Ignorance is a bliss. Count on it.
Peter Lynch lists a ton of examples where not heading to the market analysts and...more
The book has two intros and the second one alone, written in late 1990ies, paints markets in colors that are uncannily relevant. Those were crazy times that have many parallels with current situation:
- stocks growing fast for years, e.g. Cisco up 480x since going public in 1990
- fundamentals do not matter, growth and future prospects are everything (favorite metrics: "eyeballs")
- huge market concentration, dozen or so big stoc ...more
The book is very dated, and the charts could use some work.
Although I didn't find this book very useful or applicable (I'm not going to start visiting hundreds of companies, nor investing in 700+ different stocks, much less worry about stock prices when I am on vacation), there are some lessons and concepts useful for investors in general.
This is not a bad read, but ...more
Lynch is one of those people who seems like a stand up guy. He was not overly smart or special in any kind of way when he started to invest. He was in some ways struggling and hoping for something better in life. He actually even made me laugh when he mentioned you should find some stupid sounding companies to invest in before they get discovered by Wall Street investors.
I might make t ...more
A few important points.
1. If the below equation returns value 3 or more, you've found a really good stock (Ofcourse, you need to follow many other data points).
(EPS Growth [Compounded for last three years]+Div Yield)/PE
2. Earnings are the biggest predictor of price movement. Options/Futures ought to be banned.
It's very hard to find a book that ...more
Lynch worked at Fidelity Investments where named head of the then obscure Magellan Fund which had $18 million in assets. By the time Lynch resigned as a fund manager in 1990, the fund ...more