Lynch mentions a point regarding the end of the year being a good time when stocks you’ve been waiting for may become available at reduced prices. Here the book discusses when to buy and sell dealing with a market collapse, and the problems with gambling on options, futures and the shorting of stocks. “Investing without research is like playing stud poker and never looking at the cards.” The Long-term View
Summary of one up on wall street update#
So much so that you can summarize why you’re interested in the stock and the success and failure factors that can impact the company’s business in 2 minutes.Īfter buying the stock, remember to update your knowledge of the company every few months to ensure that the story still looks good. Look at the cash position, dividends, P/E ratio, debt, inventories, growth rate, book value, cash flow, etc.īefore buying a stock, understand it. Some numbers are more important than others. Lynch divided companies into 6 categories: slow growers, stalwarts, fast growers, cyclical, turnarounds, and asset plays. “Things are never clear until it’s too late.” Picking Winnersīefore you buy any stock, do your research! Predicting the direction of the stock market in the short term is a waste of time. The value of your house (real estate) as a good tool for investing is up for debate however, Lynch believes that 99% of the time, a house will be a money-maker. Do I have the personal qualities that it takes to succeed?.Keep your ears to the ground!īefore you start investing in stocks, ask yourself these 3 questions: There are great investment opportunities to be found in your neighbourhood or workplace months and years before analysts and fund managers get to know about it. “Investing in stocks is an art, not a science…” He voiced his distrust of academic stock-market theories including the efficient markets and Random Walk.įund managers are saddled with many restrictions that make it difficult for them to beat the market, and when you ask a bank to handle all your investments, mediocrity is what you are likely to get.
Summary of one up on wall street how to#
Here Lynch talks about how to assess yourself as a stock picker.
This is investing, where the smart money isn’t so smart, and the dumb money isn’t really as dumb as it thinks. You don’t get very far in One Up On Wall Street (just 3 pages in…) before you come across a great nugget from Lynch: “great investors don’t invest in what they don’t understand.” This goes on to be a central theme in the book. The book written by Peter Lynch, first published in 1988 and followed by a second edition in 2000, is an excellent read and offers timeless advice to the everyday investor.Ī theme that comes up again and again throughout this book, is that the average investor (average Joe) has the tools at their disposal to score a good one in the markets. At the end of 2016, I had added it to my financial education reading list for 2017. I added One Up On Wall Street to my library in 2015 but didn’t get around to reading it until this Spring.