✓Post No : 24
One Up On Wall Street
The book One Up On Wall Street is very famous in personal investment literature. And for all good reasons. For one, seeing Lynch sketch Wall Street and its team of investors is fun. He is a leading money manager in North America. His success is because of the feat of Fidelity’s multibillion-dollar Magellan Fund. Though this is an updated version of the content dates to the pre-bubble era of 1989. It gives warnings relating to stocks with extravagant price-to-earning ratios. Caution for the new investors: Lynch is a graduate of Wharton. He is working in the market since his graduation days. As such, he sees stocks as straightforward and simple. Like Warren Buffett, he is a typical value investor who seeks undervalued firms in nuts-and-bolts sectors. But, while Warren buys the companies, Lynch buys the stocks of those companies. One Up On Wall Street is highly recommended for people who manage their portfolios.
Study the firms you come across in your daily life. This is the best way to identify a good stock.
Rather than a stock investment, search good firms and invest in them.
If you focus on investing in good firms, the stock market fluctuations do not matter.
Individual investors have an edge over professional investors.
Know the kind of investor you are before investing in stocks. What will be your reaction if the market falls?
Firms are of six types: “turnarounds”, “asset plays”, “fast growers”, stalwarts”, “cyclical” and “slow growers”. Group your investment preferences. “Fast growers” and “turnarounds” are categories of fast growth.
Seek “tenbaggers”. A stock which grows ten times after you purchase them.
Learn a company’s story before investing in it.
Don’t ever invest in a firm just because someone brags about it.