Hello friends, In today’s article we see the new book, One Up On Wall Street. This book was written by Peter Lynch. Peter Lynch, Mutual fund manager of fidelity. He manages the Magnal fund of fidelity company. The Magnal fund has the world record of annual return for 13 years. His performance is double as compared, to market performance. in this article, we see the One Up On Wall Street book introduction.
Introduction:- One Up On Wall Street
In this book, Peter Lynch, shares his experience as well as his investment philosophy for the common investor or individual investor. An individual investor can be outperformed, most the professional investor. By reading this book you will get a simple philosophy of investing. so let’s see peter’s advice and some experience.
Peter’s Advice And Some Experience:
- Ignore what professional investors buy and recommend: If you want to outperform as an individual investor, you have to ignore the professional investor’s buy and it’s a recommendation. Because they have three reasons 1) they will be wrong 2) if they are right, you don’t know when they sell the stocks. 3) You have the maximum sources of information than a professional investor. (One Up On Wall Street: Introduction)
- Some Example from Past: the author gives one example, in this in jule,1994 you invested in one company. This company gives you a maximum return in five years of 3 lakh dollars. and also if you not invested in 30 days, from five years you will get 1.5 lakh dollars. So not investing or trading is the maximum chance of getting good stocks.
- You just have to find one winner stock in a lifetime: In your whole life, you need one stock to get super-rich. So just invest in 20 companies, in between that you get the one winner stock. (One Up On Wall Street: Introduction)
- Finding a promising company is the first step: here don’t make the mistake of seeing the company and invest in the popularity of the product. Finding a company is the first to step then analyze it.
- The next and main step is Research: When you find the company, then do the whole research about the company. In this research, you can check all fundamentals of the company and also management.
- Story of “The limited”: there was a friend of peter lynch, they also invest in the stock market. One day his wife making shopping for his daughter and telling husband about the cheap price of clothes. The husband told in reply to his wife that, “I am trying to make money, and you are spending money.”, and they invest in other companies, which are that time popular. (One Up On Wall Street: Introduction) After a week few years, the company was big and every professional investor talking about that company. And husband also read about that company and that company comes in the newspaper. Then the husband tells the wife that, once time you are telling me about the limited company, saying that the company is doing good. Then wife replies that that company, me and my friends don’t buy from him our clothes because they increase the price of the product. Again husband not listen to his wife and make an investment in the limited company. Then again lose their money, one company not chosen, and again when the company is chosen, when they overprice.
So above story, you get the basic philosophy. that is seeing around the product and find the company. After that make the investment. (One Up On Wall Street: Introduction)
If you want to be an intelligent investor you have to read to books
- The Intelligent Investor by Benjamin Graham Read book: Click here
- One Up On Wall Street by peter lynch