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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 3: The Long Term View Chapter 17 – The Best Time to Buy and Sell

There are two periods when a bargain is met

During holiday period October to December brokers will encourage selling for commission and this will drive stock prices down

Second is during crisis and collapses that happens every few years


When to sell?

No single formula can help

If you know why bought a stock, then you will automatically know when to sell it


When to Sell a Slow Grower

When there’s 30 to 50 percent appreciation 

When the fundamentals are gone

The company lost market share for 2 years straight

No new products are being developed

Unrelated acquisitions 

Lots of debt

When to Sell a Stalwart

New products introduced with mixed results

Stock has a PE of 15 while competitors have 11-12

No officers or directors bought the shares

Vulnerable to economic slump 

Growth been slowing down


When to Sell a Cyclical

Sell toward the end of the cycle

Sell when something started to go wrong such as costs rise

Inventories are building up and commodities price falling

Competition is a bad sign that leads to price cut

Labor issues and the demand for product slowing down
The company failed to compete and making wrong expenses

When to Sell a Fast Grower
Don’t lose the tenbagger
When Wall Street  and magazines are giving the highest recommendation, sell it
Same store sales are down as well as new stores
Executives are leaving to join the competition
Stock is selling at PE of 30 when the optimistic projection of growth in coming 2 years is 15 to 20 percent

When to Sell a Turnaround
After it’s turned around
Debt declined for five straight quarters
Inventories are rising twice at the rate of sales of growth
The PE is inflated relative to earnings prospects
Strongest division in company’s customer is suffering slowdown

When to Sell an Asset Play
Wait for the raid and see if shares sell at a discount to market value
Division brought a lower sale price
Reduction in corporate tax & institutional stakes increased


Read One Up On Wall Street by Peter Lynch Chapter 16 full summary here 👇:
http://mysweetluck.blogspot.com/2020/09/one-up-on-wall-streetsummarypart-3.html

Watch One Up On Wall Street by Peter Lynch Chapter 15 full summary here 👇:
https://youtu.be/CSoQxefTnvo

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