Key Lessons from One Up On Wall Street by Peter Lynch:
1) Anyone can pick their own stocks. No need to outsource to a fund manager.
2) Investment opportunities are everywhere. Be on the lookout in daily life.
3) Buy what you know.
1) Anyone can pick their own stocks. No need to outsource to a fund manager.
2) Investment opportunities are everywhere. Be on the lookout in daily life.
3) Buy what you know.
4) Superior companies will succeed, and mediocre companies will fail. Invest accordingly.
5) Investing is not gambling. Businesses are attached to the stocks.
5) Investing is not gambling. Businesses are attached to the stocks.
6) Buy businesses that “any idiot can run” (because eventually one will)
7) When you get in early, you can find ten baggers. A few will turn an average stock portfolio into a star performer.
7) When you get in early, you can find ten baggers. A few will turn an average stock portfolio into a star performer.
8) You must be “ready” to own stocks. Need patience, persistence, detachment, and personal finances must be in order
Here's my order of operations suggestion:
Stock picking is step 12a!
Here's my order of operations suggestion:
Stock picking is step 12a!
9) Focus on buying profitable companies that aren’t overpriced. Avoid “hot stocks”.
10) Never invest before you’ve done your homework.
11) Always invest with a reason. Don't buy "hot tips"
10) Never invest before you’ve done your homework.
11) Always invest with a reason. Don't buy "hot tips"
13) The manic-depressive Mr. Market isn’t your friend. Trying to predict his behavior is one of the worst things you can do.
14) 6 broad categories of stocks
Slow growers: $VZ, $T
Stalwarts: $WMT, $PEP, $KO
Fast Growers: $LULU, $TWLO, $SHOP
Cyclicals: $F, $NUE, $DE
Turnarounds: $GE, $GPS, $BBBY
Asset plays: $M?
Slow growers: $VZ, $T
Stalwarts: $WMT, $PEP, $KO
Fast Growers: $LULU, $TWLO, $SHOP
Cyclicals: $F, $NUE, $DE
Turnarounds: $GE, $GPS, $BBBY
Asset plays: $M?
15) Don't buy "long shots" - $SPCE?
16) Avoid high customer concentration - $SKWS? $OLED?
17) Avoid companies that deworsesify
16) Avoid high customer concentration - $SKWS? $OLED?
17) Avoid companies that deworsesify
Quotes:
"The odds against making a living in the day-trading business are about the same as the odds against making a living at racetracks, blackjack tables or video poker. In fact, I think of day trading as at-home casino care."
"The odds against making a living in the day-trading business are about the same as the odds against making a living at racetracks, blackjack tables or video poker. In fact, I think of day trading as at-home casino care."
Quotes:
"When it comes to predicting the market, the important skill here is not listening, it’s snoring. The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them."
"When it comes to predicting the market, the important skill here is not listening, it’s snoring. The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them."
Quotes:
"Success is one thing, but it’s more important not to look bad if you fail. There’s an unwritten rule on Wall Street: ’You’ll never lose your job losing your client’s money on $IBM.’"
"Success is one thing, but it’s more important not to look bad if you fail. There’s an unwritten rule on Wall Street: ’You’ll never lose your job losing your client’s money on $IBM.’"
Investing sayings that are wrong:
"It’s gone down this much, it can’t go lower."
"It’s up too much -- it can’t go any higher."
"When it rebounds to XXX price, I’ll sell."
"The stock is up/down -- my thesis is right/wrong."
"It’s gone down this much, it can’t go lower."
"It’s up too much -- it can’t go any higher."
"When it rebounds to XXX price, I’ll sell."
"The stock is up/down -- my thesis is right/wrong."
