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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

One Up On Wall Street SUMMARY Part 2: Picking Winners Chapter 7 – I’ve Got It, I’ve Got It- What is it?

Investing without research is risky, avoid it
If you’re considering a stock on the strength of some specific product that a company makes, the first thing to find out is: What effect will the success of the product have on the company’s bottom line?
The size of a company matters because big companies will not have big stock moves.
They perform well over the long run
There are six general categories of a company. 
Slow growers, stalwarts, fast growers, cyclicals, asset plays and turnarounds
The slow growers started out as fast growers and slowed down when an industry at large slows down
Every popular fast growing industry will become a slow growing industry
Another sign of a slow grower is the fat dividends that they pay regularly because they can’t think of a good use for the money
The Stalwarts are companies such as Coca-Cola, Kellogg, Hershey’s and Proctor and Gamble. They are faster than slow growers for an example 10-12% annual growth in earnings
You can’t expect to squeeze out of them much
Fifty percent in two years is what you will be delighted to get in normal situations
They can offer good protection during recession and hard times

The Fast Growers are small, aggressive new enterprises that grow at 20 to 25 percent a year.
This where you can get from 10 to 200 baggers and one or two in your portfolio can be a big success
They don’t necessarily belong to fast growing industry and the room for growth enables them to be fast growers such as expansion into new markets
Risk comes together with companies that are underfinanced, they can run out of money fast & become slow growers
They are the winners of the stock market and find the ones with good balance sheets making substantial profits at the same time find out when they will stop growing and how much to pay for the growth

The Cyclicals is a company where sales and profits will fluctuate regularly
Famous examples are the auto industries, airline industries, chemical companies and steel companies
You can lose more than fifty percent quickly if you buy at the wrong time
You must be able to detect the early signs

Turnarounds are no growers.
There is bail us out or else kind turnaround, who would have thunk it turnaround, little problem we didn’t anticipate turnaround, perfectly good company inside a bankrupt company turnaround and restructuring to maximize shareholder values turnaround

An Asset Play is a company that’s sitting on something valuable such as real estate or cash that you are well aware but the crowd has overlooked
Asset opportunities are everywhere and all you need is patience. A good example would be Disney profiting from it classic assets with remakes, merchandise and theme park
Companies won’t stay in same category forever
Putting stocks in categories is the first step and next step is filling in the details

Read One Up On Wall Street by Peter Lynch Chapter 6 full summary here 👇:
http://mysweetluck.blogspot.com/2020/08/one-up-on-wall-street-summary-part-2.html

Watch One Up On Wall Street by Peter Lynch Chapter 5 full summary here 👇:
https://youtu.be/6NGyYjKJIlY

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Hey everyone, I'm Michael. I don't read books, I research them. This channel is all about best business books and I will be summarizing the books that I am researching chapter by chapter. Do Subscribe and Follow MYSWEETLUCK.

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