• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Marathi Investor

Survival is the only way to get Rich

  • Home
  • Stocks Market Basics
  • Investing
    • Investing Books
      • Common Stocks and Uncommon Profits
      • the DHANDHO INVESTOR
      • Security Analysis
      • Stocks to Riches Book Summary
      • Intelligent Investor
      • One Up On Wall Street
      • the DHANDHO INVESTOR
  • Accounting
  • Mutual Fund
  • Bitcoin Investing
  • Contact Us
You are here: Home / Investing / Investing Books / One Up On Wall Street / One Up On Wall Street: Chapter 10

One Up On Wall Street: Chapter 10

January 16, 2021 by Laxman Sonale 1 Comment

Hello Friends, in today’s article we see chapter 10 of One up on wall street book. In chapter 10 we see the earning process of investors. let’s see one by one.

One Up On Wall Street: Chapter 10

Earning, Earning, Earning:-One Up On Wall Street: Chapter 10

You read the before all chapter and you get the idea of investment to make money or say earn money. So to this process, you have to ask some thought to yourself in this earning process. this process as follows: (One Up On Wall Street: Chapter 10)

Read the previous chapter: Click here

 

Think to ask yourself:

  • What makes a company values and also why will it be more valuable tomorrow that is today: At this point, you have to see the company status and ask yourself the value of a company that is whatever is today, it may be changed in the future and which criteria that change in the positive way of company value. If you have a good answer in your thought they buy that company you get the absolute result of that company. (One Up On Wall Street: Chapter 10)
  • Earnings and Stock price move together: If some company stock price is more than the earning value then it is the market fluctuations. So long terms Earnings and Stock price is moving together. If earnings go higher or the stock price is low, then don’t worry the stock price follows the earnings price. that’s why Peter Lynch says Earnings and Stock price is moving together. (One Up On Wall Street: Chapter 10)
  • About the P/E Ratio: There are so many people who make the decision on the P/E ratio. So if you do also then you have to know there are three types of P/E ratio affect the stock. 1)Overprice stock: If the P/E ratio is maximum then, the stock is overpriced by the crowd of investors. 2)Underprice Stock: If the P/E ratio is minimum then, the stock is underpriced. 3)Fairlypriced: The stock price is medium than that stock is fairly-priced. That’s the common people things on the P/E ratio.
  • The author says,” To think about the P/E ratio is like how much time to take the company to recover our investment principle.” if we assume a company on P/E constant means a medium grower company then, 10 to 14 years is required to recover our money. The company is a fast grower then your money is recovered in the 7-9 years, and if the company is a slow grower, then it takes 14-20 years to recover your money. (One Up On Wall Street: Chapter 10)
  • Compare P/E ratio with industry and historical data: That you the right value of P/E which is not be followed by a crowd of investors. If you compare the P/E with historical and industry P/E then you the P/E ratio is bargain able or not. so always compare yourself with others.
  • Avoid stocks with high P/E: This type of company is followed by the big institutional investor and you have to wait in this situation time. Here our Patience quality is checked. (One Up On Wall Street: Chapter 10)

So Peter Lynch gives 5 ways that increase the earnings of the company. if the company is earning then the stock value is increased. that way as follows

5 ways to increase earnings:

  1. Reduce cost: If you want to increase earnings of your stock then, check the company expending in which area that can be reduced by any reason, if the company is doing, then your price earning is increased. So check to reduce cost.
  2. Raise Prices: If a company is increasing the price of the product, then they are directly proportional to the earnings. So check for the product price and also see the price of the limit of the product can be increased. (One Up On Wall Street: Chapter 10)
  3. Sell more product in the existing market: Check for the company sales rate, if the company is doing great sales and sell more product then it’s ok for the earnings purpose.
  4. Expand into the new market: If a company is moving and expand the whole over the country and globe then the price of earning is increasing because the company gets more sales and sells the product. So check for this purpose also. (One Up On Wall Street: Chapter 10)
  5. Close or dispose of a losing operation: Check for the unworkable machine, or the department and this company is tried and close all of his department then the price of earnings is increases.

 

This is all about the 5 ways of earning in the company, and also chapter 10 of one up on wall street book.

Visit Biotech website: Click here

facebookShare on Facebook
TwitterTweet
FollowFollow us

Filed Under: One Up On Wall Street Tagged With: book pdf, company, Earnings, One Up On Wall Street book, peter lynch

Reader Interactions

Trackbacks

  1. One Up On Wall Street: Chapter 11 - The Marathi Investor says:
    January 28, 2021 at 8:55 am

    […] Previous Chapter 10 […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search Post

Please follow & like us :)

Facebook
Facebook
fb-share-icon
YouTube
Instagram
Twitter
Visit Us
Follow Me
Tweet
Pinterest
Pinterest
fb-share-icon
LinkedIn
LinkedIn
Share
Telegram

Recent Posts

  • What is Ethereum and Smart Contract?
  • Blockchain Technology Investment
  • Is bitcoin the future of Money?
  • Is Bitcoin a Currency or an Investment?
  • How Bitcoin’s Prices Increases in Past?

Recent Comments

  • How to win friends and Influence People - book summary pro on Security Analysis: Chapter 15
  • Zero to One Book summary - book summary pro on Intelligent Investor: Chapter 14
  • Top 10 best books on Self Help - book summary pro on Intelligent Investor: Chapter 20
  • Top 10 Best books on Money - book summary pro on Intelligent Investor: Chapter 18
  • Best Books on Investing - book summary pro on Intelligent Investor: Chapter 20

Categories

  • Accounting (1)
  • Bitcoin Investing (10)
  • Common Stocks and Uncommon Profits (12)
  • Intelligent Investor (19)
  • Investing (10)
  • Investing Books (1)
  • Mutual Fund (1)
  • One Up On Wall Street (22)
  • Security Analysis (16)
  • Stocks Market Basics (1)
  • Stocks to Riches Book Summary (11)
  • the DHANDHO INVESTOR (13)
  • Uncategorized (1)

How to deal with Mr. Market

The Intelligent Investor Chapter 8:- Investor and Market Fluctuations

50,000 Frenchman can be wrong

One up on wall street Chapter 20

Best time to Buy and Sell Stocks

When to Buy and sell stocks

Common Stocks and Uncommon profits Book Summary

Common Stocks and Uncommon Profits book review

One Up On Wall Street:- Chapter 13

One Up On Wall Street Book: Chapter 13
What is Ethereum

What is Ethereum and Smart Contract?

April 29, 2023 By Laxman Sonale Leave a Comment

Hello friends, in today’s article we discuss Ethereum and Smart Contracts Explain. After reading this you get the good and bad things about Ethereum and Smart contracts. Previous Article on BlockChain Ethereum and Smart Contracts:- After Bitcoin, the second most extensive network is the Ethereum network of blockchain technology. Just like Bitcoin technology saves the […]

Blockchain Technology Investment Good or Bad?

Blockchain Technology Investment

July 13, 2022 By Laxman Sonale 1 Comment

Hello friends, in today’s article we see the Blockchain Technology Investment in form of Computer science and understand the basics and their goals. We see in the previous article, that the main goal of making a bitcoin is to remove the Bank to make payments person to person. to complete this goal, one system is […]

Is bitcoin the future of Money?

Is bitcoin the future of Money?

May 20, 2022 By Laxman Sonale 1 Comment

Hello friends, in today’s article, we see whether is bitcoin the future of money? what happens in the future if cryptocurrency is ruled by the government, let’s understand all questions answered in this blog. Previous Article on Bitcoin Is Bitcoin the future of money:- Before starting this discussion, I read a previous article on bitcoin, […]

Is Bitcoin Currency or Investment?

Is Bitcoin a Currency or an Investment?

May 20, 2022 By Laxman Sonale 1 Comment

Hello friend, in today’s article, we see is bitcoin a currency or an investment? and what is the effect on our economy and how we can use it for our best use? so let’s see each and every factor. Previous Bitcoin Article is Bitcoin a Currency or an Investment?:- before the start, let’s understand these […]

How Bitcoin's Prices Increases high in past?

How Bitcoin’s Prices Increases in Past?

May 20, 2022 By Laxman Sonale 1 Comment

Hello friends, In today’s article, we see how Bitcoin’s prices increase in the past, what are the reasons behind that, and most important question, if Is there any chance bitcoin prices goes up in the future. so let’s see them one by one. Previous Bitcoin Article How bitcoin’s prices increase:-   so, friends, anything product […]

What Gives Bitcoin Value?

What gives Bitcoin Value?

May 16, 2022 By Laxman Sonale 2 Comments

Hello friends, in today’s article, we see what gives bitcoin any value. If bitcoin has any value, so then what things, give the value? so let’s understand step by step. Previous Bitcoin Article Fiat currency and What gives Bitcoin Value?:- In history, Food, animal, gold, and silver coins were used as currency. Because Food is […]

Fire Movement

FIRE Movements in Life

May 1, 2022 By Laxman Sonale Leave a Comment

Hello friends in today’s article, we talk about the FIRE Movements. FIRE means Financial Independent and Retire Early). Everyone wants to retire early, so for that, we writing this blog. so let’s understand how to get retire early. so let’s start Financial Freedom Fire movements:- Financially Independent, Retire Early) The FIRE movement, the concept was […]

Financial Freedom for common man

Financial Freedom for common man

April 11, 2022 By Laxman Sonale 1 Comment

Hello friends, today we talk about Financial Freedom for the common man. Stock Market helps you to achieve this goal. so let’s understand what is the real meaning of financial freedom, and how can we achieve that. Financial Literacy What is the real meaning of Financial Freedom for the common man? In simple words, says, […]

The Dhandho Investor Chapter 12:- Dhandho 401:- Margin of Safety

The Dhandho Investor:- Chapter 12

April 8, 2022 By Laxman Sonale 3 Comments

Hello friends, in today’s article, we see The Dhandho Investor:- Chapter 12, this chapter is all about the margin of safety while you invest in the stock market. so let’s understand this concept in the author’s words. Previous Chapter 11 Dhandho 401: Margin of Safety – Always In this chapter, the author refers the Benjamin […]

The Dhandho Investor Chapter 11:- Fixate On arbitrage

The Dhandho Investor Chapter 11

April 5, 2022 By Laxman Sonale 1 Comment

Hello friends, in today’s article, we see The Dhandho Investor Chapter 11 Summary. this chapter is all about fixating on Arbitrage. so let’s understand, how value investors can take benefit from this arbitrage. Previous Chapter 10 Dhandho 302:- Fixate On arbitrage (Chapter 11) In starting the author explain, what is the arbitrage, and how value […]

Problems with Cryptocurrency

problems with cryptocurrency like Bitcoin

April 4, 2022 By Laxman Sonale 1 Comment

Hello friends, in today’s article, we see the problem with cryptocurrencies like bitcoin. so if you know this problem, then you understand the whole technology, and how it works. so let’s start Bitcoin Story Problems with Bitcoin:- let’s understand one by one 1) Scalability:-problems with cryptocurrencies like Bitcoin In Bitcoin 1 block size is 1 […]

Footer

Financial Literacy

Stocks to Riches Chapter 13L- Financial Literacy to Become Rich

When to Buy Stock ( by Philip A. Fisher)

When to buy stocks

Loss Aversion & Sunk Cost Fallacy Bias

Stocks to Riches:- Chapter 5 Loss Aversion and Sunk Cost Fallacy Bias

Sources of Information about Company

Annual Reports of the Company: security Analysis

Mutual Funds:- Good or Bad?

Stocks to riches Chapter 9:- Mutual fund good or bad

Follow us

Get new posts by email

Copyright © 2023 · News Pro on Genesis Framework · WordPress · Log in