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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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One Up On Wall Street SUMMARY Part 2: Picking Winners Chapter 15 – The Final Checklist

Stocks in general

Find out whether the PE ratios is high or low for a company

Identify the percentage that the company owns, the lower it is the better

Are insiders buying the stock? The company is buying back the stocks? That’s good!

The earnings are consistent?

Strong balance sheet?

What’s the cash position?

Slow Growers
Check if dividends are always paid and raise
What percentage of earnings are being paid? Low is better as the company will have cushion in hard times

Stalwarts
Big companies that won’t go out of business
Are there any possibility for diworseifications that can reduce earnings?
Long term growth rate is maintained?
How it survived previous recessions if you are going to hold it for long term

Cyclicals
Any new entrants in the market?
Inventories a lot? Not a good sign
Multiple time PE will shrink as business recovers
You have advantage in figuring out the cycles if you know your company is cyclical

Fast Growers
The product is a major part of the business?
What about the growth rate in recent years? 20 to 25%?
Prove of expansion?
Still has room to grow?

Stock is selling at PE ratio or near growth rate?
Expansion is speeding up?
Only few institutions and analysts own?

Turnarounds
Can the company survive creditors?
How much cash does it have? How much debt?
If it’s already a bankrupt, then what’s there for shareholders
What’s the turnaround strategy for the company?
Business is back again?
Is the company cutting the costs?

Asset Plays
Figure out the hidden assets of a company and the value of the assets
Is the assets becoming less valuable where the company taking on new debt?
Is there someone to help shareholders reap the benefits of the assets?

Part 2 in depth summary
Understand the company and the reasons why you are holding
Put them into the right categories
Big companies will have small moves
Look for companies that are already profitable
Ignore 50 to 100 percent growth rate a year companies
Ignore hot stocks in hot industries as well as diversifications
Wait to see whether the company's plan is working out
Get information from employees, avoid tippers
Invest in simple mundane dull companies that Wall Street ignores

20 to 25 percent growth rate in nongrowth industries are ideal
Look for companies with niches and find the one with superior financial positions when investing in depressed stocks
Companies without debt cannot go bankrupt
Buy based on the company’s prospects not the CEO’s speaking ability
Troubled company can make a lot of money with turn around
PE ratio should not be high and find a good story to follow the progress
Buybacks are great as well as dividends. Insider buying is a good sign as well. 
Devote an hour a week for research, be patient buy value


Read One Up On Wall Street by Peter Lynch Chapter 14 full summary here 👇:
http://mysweetluck.blogspot.com/2020/08/one-up-on-wall-street-summary-part-2_30.html

Watch One Up On Wall Street by Peter Lynch Chapter 13 full summary here 👇:
https://youtu.be/k9gds4Cbtu4

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