Hello friends, in today’s article we see chapter 2 of one up on Wall Street book. In chapter 2 you get what is the oxymorons. And Why Peter Lynch called as oxymorons to the professional investor. In chapter 2 of One Up On Wall Street book, Peter Lynch explains that not all are the professional investor are oxymorons. let’s see step by step.
The Wall Street Oxymorons:-One Up On Wall Street: Chapter 2
- Oxymorons: The professional investor who is doing dull work and gets the average return. So this type of professional investor is Oxymorons. So many professionals are not Oxymorons. Those are as follows.
So let’s see that people are professional investors but not oxymorons.
- John Templeton: The best thing about john Templeton is that When the stock market crash in 1972 in the USA. These guys invest in other countries like Canada, Japan. They take all money from the USA market and invest in other countries. Most of the investor is not doing well in other country so for that, they can’t invest in other countries. (One Up On Wall Street: Chapter 2)
- Max Heine And Micheal: Max and Micheal both are students of Benjamin Graham, so they follow the value investing approach, when the stock market is down then they invest in the market. So it is the professional investor but against the Oxymorons, so that why they are not the Oxymorons.
- John Neff: He is a good investor, and choose that company to become a good return for him. For this reason, is also called Champion of out of Favor Stock. So he is not the oxymorons.
- Ken Heebner and Peter Deroeth: Both of this investor is not going to the business school. Ken Heebner has a law background, and they completed their graduation from Harvard law school. So suddenly they have a passion for Equity. and then they start investing in equity and make more money. This is also a type of investor who does not go to business school and it’s got the benefit of that. (One Up On Wall Street: Chapter 2)
- George Soros: This is a type of investor, who has the world record of the hedge fund. he is not also an oxymoron. And not doing what other oxymorons do.
- Warren Buffet: Warren buffet is also a student of Benjamin Graham. He still operates the biggest holding company in the world. that has a big stock price. Warren Buffet is one that type of investor who comes in the Top riches people as an investor. He is a world-famous investor, and also a humble investor.
So let’s talk about the professional investor, following are some point about the professionals.
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Constraints for professionals:
- Professionals discover companies very late: In professionals portfolios have a big size company and they don’t have time to research so that they don’t discover a company early. Sometimes it takes 10 years to discover the company. (One Up On Wall Street: Chapter 2)
- Most Professionals focus on a handful of Companies: Professional investors select the company. which has a big size, and minimum risk. So they only focus on a handful of companies.
- Fear of getting fired: Professional investor has a pressure of getting fire. So they do the same things as all professional investors do.
- Spend a lot of time explaining to bosses and clients: If any one of those professional investors makes an investment in unpopular companies, They have to explain to the boss and also the clients. so for that difficult, most of the investor is not doing the investment in unpopular companies.
- Constraints for professionals and the opportunity for amateurs: So individual investors make anywhere investment, without constraints and do a good job as compared to the professionals.
- Amateur investor: If you think like an amateur, most of the time, you have common sense with you. So amateur investors to good investment as compared to professional investors. (One Up On Wall Street: Chapter 2)
- Peter thinks like an amateur as frequently as possible: So that reason, he has the world record of fund manager continue of 13 years. You get good company, when you think like an amateur, so that reason peter thinks like an amateur.
So this is all about the oxymorons.
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