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One Up On Wall Street SUMMARY Conclusion Chapter 20 – 50,000 Frenchmen Can Be Wrong

The market, like individual stocks, can move in the opposite direction of the fundamentals over the short term Be optimistic about America and investing in general Market declines are great opportunities to buy stocks in companies that you like You can never predict the market It takes years, not months to produce big results You can make serious money by compounding a series of 20-30 percent gains in Stalwarts Stock prices often move in opposite direction but the long term, the direct and sustainability of profits will prevail Buying a company just because its cheap is a losing strategy Selling an outstanding fast grower because its stock slights overpriced is a losing technique You don’t lose anything by not owning a successful stock Stock doesn’t know that you own it Don’t be attached to a winner Don’t stop monitoring the story If you don’t think you can beat the market then buy a mutual fund Keep an open mind to new ideas Read One Up On Wall Street by Peter Lynch Chapter 19 full su...
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The Dhandho Investor SUMMARY Chapter 13 Dhandho 402: Invest in Low-Risk, High-Uncertainty Businesses

STEWART ENTERPRISES
Lowest rate of failure of any business was funeral homes. funeral homes ought to trade at very high premiums and double-digit P/E ratios. Their cash flow has a very high degree of certainty. A  bulletproof business being discarded by the Street and young generations

LEVEL 3 CONVERTIBLE BONDS
Level 3 is a global provider of bandwidth and related services primarily to the networking/telecommunications industry. Rapidly changing industries are the enemy of the investor. Buffett made an investment about $350 Million. Pabrai Funds invested 10 percent of assets in 2001 and 2002 in Level 3 senior bonds and convertibles.

In third quarter 2003, Mohnish completely exited out of the bonds. The bonds went up from 54 cents to 73 cents on the dollar. In addition, Pabrai Funds collected interest for all that time, more than a 20 percent current yield on interest. The average annualized gain was around 120 percent.

FRONTLINE
It has the largest oil tanker fleet in the world, among all the public companies. In the third quarter of 2002, oil tanker rates collapsed. The stock price had gone from $15 to $3. Frontline was trading at less than one third of liquidation value. The chairman was
buying stock and that’s always a good sign. Mohnidh  bought a great deal of Frontline stock in the fall of 2002 at an average price of $5.90 per share, which is about half of the $11 to $12 per share you would get in a liquidation. Started to sell them once it got past $9, approaching $10. All the three businesses are different but they offered short term opportunity with ultra low risk and ultra high return. Pricing will always be affected as long as humans drive buying and selling decisions in equity markets. Fear and greed can be your aid. Read and wait patiently because these opportunities will come from time to time.

Watch The Dhandho Investor Chapter 12 full summary here 👇:
https://youtu.be/HPQNj8Dfer4

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