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122 reviews for:
One Up on Wall Street: How to Use what You Already Know to Make Money in the Market
John Rothchild, Peter Lynch
4.06 AVERAGE
122 reviews for:
One Up on Wall Street: How to Use what You Already Know to Make Money in the Market
John Rothchild, Peter Lynch
4.06 AVERAGE
informative
slow-paced
Lost interest in content and was not very different from common advice
If you want to start investing and you want to understand investment strategies, this is for you!
It's written in simple language and this is for anyone who wants the brutal reality of the investing in stock markets
I've certainly had many takeaways from this book
Absolutely love it!
It's written in simple language and this is for anyone who wants the brutal reality of the investing in stock markets
I've certainly had many takeaways from this book
Absolutely love it!
informative
slow-paced
A must read for a novice investor. Even though the book is focused on American markets, the principles hold good for almost any equity market.
Take-Aways
-Study the firms you come across in your daily life. This is the best way to identify a good stock.
-Rather than a stock investment, search good firms and invest in them.
-If you focus on investing in good firms, the stock market fluctuations do not matter.
-Individual investors have an edge over professional investors.
-Know the kind of investor you are before investing in stocks. What will be your reaction if the market falls?
-Firms are of six types: “turnarounds”, “asset plays”, “fast growers”, stalwarts”, “cyclical” and “slow growers”. Group your investment preferences.
“Fast growers” and “turnarounds” are categories of fast growth.
-Seek “tenbaggers”. A stock which grows ten times after you purchase them.
-Learn a company’s story before investing in it.
-Don’t ever invest in a firm just because someone brags about it.
Finding a “Tenbagger”
A “tenbagger” is a stock which earns ten times return on investment. You will find a tenbagger when you go shopping. The first sign that a stock will rise quickly is a warm reaction from customers. You have an edge in being a consumer. Likewise, working in business also offers an edge, as you get exposure to successful firms. This offers a benefit in identifying a likely tenbagger. The first step of doing your research is to find the story of the company. This will not take more than a couple of hours. Plus, if you base your decision on a specific product the firm sells, identify the impact of the product on the firm. Understand the company’s size as smaller companies are likely to have huge value swings. Also, find out the company’s type. There are six classes:
“Slow growers” – These are big, established firms. They are at a stage where they will rise only slightly quicker than the overall economy.
“Stalwarts” – Such established firms are relatively dynamic. But they are not very agile. Examples include Procter & Gamble, Coca-Cola, and Bristol-Myers.
“Fast growers” – These small firms are rising aggressively. In fact, even at a rate of 25% per year. A few of them can make your portfolio stronger.
“Cyclicals” – Such companies have a natural swing in their stock performance. Airlines, automobile manufacturers, defense, tire, and steel are all cyclical.
“Asset plays” – These firms have valuable assets. You think you know something about them which the Wall Street has overlooked. Wall Street ignores things many times.
“Turnarounds” – Such companies can provide great opportunities. When big firms like Ford and Chrysler face issues, they have the ability to turnaround things fast.
Getting the Story
The story of a company is an explanation of its unique positioning to succeed. It helps to have some knowledge about the business of the firm. Once you’re familiar with a firm, you can understand that a person with even a little brain can run it. Maybe because of its edge in the marketplace or its easy production process. These features are appealing as they take you away from the whims of management. Look for the below mentioned 13 extra features to ensure a firm is an appealing investment:
1. “It seems dull or ridiculous.”
2. “It’s doing something boring.”
3. “It’s doing something unpleasant.”
4. “It’s a by-product”.
5. “The institutions don’t control it. The market analysts don’t chase it.”
6. “There’s something not good about it.”
7. “The rumors are many. For example. it’s involved with Mafia or toxic waste.”
8. “It’s from a no-growth sector.”
9. “It has a niche.”
10. “People need to continue purchasing it.”
11. “It uses technology”.
12. “The buyers are insiders.”
13. “The firm is doing share buy-backs.”
-Study the firms you come across in your daily life. This is the best way to identify a good stock.
-Rather than a stock investment, search good firms and invest in them.
-If you focus on investing in good firms, the stock market fluctuations do not matter.
-Individual investors have an edge over professional investors.
-Know the kind of investor you are before investing in stocks. What will be your reaction if the market falls?
-Firms are of six types: “turnarounds”, “asset plays”, “fast growers”, stalwarts”, “cyclical” and “slow growers”. Group your investment preferences.
“Fast growers” and “turnarounds” are categories of fast growth.
-Seek “tenbaggers”. A stock which grows ten times after you purchase them.
-Learn a company’s story before investing in it.
-Don’t ever invest in a firm just because someone brags about it.
Finding a “Tenbagger”
A “tenbagger” is a stock which earns ten times return on investment. You will find a tenbagger when you go shopping. The first sign that a stock will rise quickly is a warm reaction from customers. You have an edge in being a consumer. Likewise, working in business also offers an edge, as you get exposure to successful firms. This offers a benefit in identifying a likely tenbagger. The first step of doing your research is to find the story of the company. This will not take more than a couple of hours. Plus, if you base your decision on a specific product the firm sells, identify the impact of the product on the firm. Understand the company’s size as smaller companies are likely to have huge value swings. Also, find out the company’s type. There are six classes:
“Slow growers” – These are big, established firms. They are at a stage where they will rise only slightly quicker than the overall economy.
“Stalwarts” – Such established firms are relatively dynamic. But they are not very agile. Examples include Procter & Gamble, Coca-Cola, and Bristol-Myers.
“Fast growers” – These small firms are rising aggressively. In fact, even at a rate of 25% per year. A few of them can make your portfolio stronger.
“Cyclicals” – Such companies have a natural swing in their stock performance. Airlines, automobile manufacturers, defense, tire, and steel are all cyclical.
“Asset plays” – These firms have valuable assets. You think you know something about them which the Wall Street has overlooked. Wall Street ignores things many times.
“Turnarounds” – Such companies can provide great opportunities. When big firms like Ford and Chrysler face issues, they have the ability to turnaround things fast.
Getting the Story
The story of a company is an explanation of its unique positioning to succeed. It helps to have some knowledge about the business of the firm. Once you’re familiar with a firm, you can understand that a person with even a little brain can run it. Maybe because of its edge in the marketplace or its easy production process. These features are appealing as they take you away from the whims of management. Look for the below mentioned 13 extra features to ensure a firm is an appealing investment:
1. “It seems dull or ridiculous.”
2. “It’s doing something boring.”
3. “It’s doing something unpleasant.”
4. “It’s a by-product”.
5. “The institutions don’t control it. The market analysts don’t chase it.”
6. “There’s something not good about it.”
7. “The rumors are many. For example. it’s involved with Mafia or toxic waste.”
8. “It’s from a no-growth sector.”
9. “It has a niche.”
10. “People need to continue purchasing it.”
11. “It uses technology”.
12. “The buyers are insiders.”
13. “The firm is doing share buy-backs.”
Peter Lunch has a phenomenal record during the time he managed funds. He gives a very practical based approach on stock research but since this books was written 30 years ago the Dynamics have changed so much. He assumes the information did not flow to the institutions which is rightfully so at that time but in today's world you cannot expect that. Although it gives a very good base to start on and take your research forward. Particular concepts in the book are gem.
funny
informative
lighthearted
fast-paced
Probably the best book on how to search a stock (or Stocks) in daily life.