Date post: | 05-Apr-2018 |
Category: |
Documents |
Upload: | senthil-kumar |
View: | 222 times |
Download: | 0 times |
of 22
7/31/2019 Deepak Jon1
1/22
BOOK REVIEW FOR
One Up On Wall Street
(The international best selling book thatevery investor should own)
7/31/2019 Deepak Jon1
2/22
Peter Lynch's Investing Insights
AUTHOR
PETER LYNCH
with JOHN ROTHCHILD
PUBLISHED IN THE YEAR :1989
7/31/2019 Deepak Jon1
3/22
PETER LYNCH -Introduction
Americas number one money manager. Born on JAN 19 1994,U.S.A. He was working with Fidelity
investments while writing this book. Other publications are, Beating the
street(1993) and Learn to Earn (1996).
This book was co authored by JohnRothchild,who is a specialized freelancewriter in financial matters.
7/31/2019 Deepak Jon1
4/22
INSIGHTS OF THE BOOK
Not necessary to make money on
every stock.
Time is on your side, when you
are a long term investor.
Bearish arguments always
sounds more intelligent a
successful investor. GOLDEN RULE - Stop listening
to professionals.
7/31/2019 Deepak Jon1
5/22
STEP 1
FINDING A COMPROMISING
COMPANY
7/31/2019 Deepak Jon1
6/22
STEP 2
RESEARCH
(Helps to sort out a goodcompany from a bad one)
7/31/2019 Deepak Jon1
7/22
NEWTON
If I have seenfartherit is by standing upon
the shoulders of Giants
7/31/2019 Deepak Jon1
8/22
LOGIC
Logic is very important in
stock picking as it helpsyou to identify peculiar
illogic of Wall Street.
7/31/2019 Deepak Jon1
9/22
WILL ROGERS
Dont gamble. Take all yoursavings and buy some good
stock and hold it till it goes
up, then sell it. If it doesnt
go up, dont buy it.
7/31/2019 Deepak Jon1
10/22
MAJOR AREAS THE BOOK IS
FOCUSSED ON
Observations in your day to day life can helpyou identifya particular individual stock.
Thinkon the following points.
- How you can make your decision onthose?
- Which industries do you know well?
- What companies seem to be surging inthat area?
Reactbased on your observation.
7/31/2019 Deepak Jon1
11/22
PREPARING TO INVEST
Ignore the analysts and experts.
Do your own research and find the stocks that
you really understand and believe in.
Never try to time the
market or predict the
economy .
Focus on what youknow.
7/31/2019 Deepak Jon1
12/22
Contd.,
Just listen to what people say, do your owninvestigation, and follow up on what you find.
In this section at last author wants answer of
the three major question from the one whowants to start investing in individual stockmarket.
1. Do I own a house?
2. Do I need the money?3. Do I have the personal qualities which will
guide me to succeed?
7/31/2019 Deepak Jon1
13/22
PICKING WINNERS
At first do your homework.
Observe and identify the companies doing
good business .
Once identified dig in and do the research.
Here research means learn everything
about the company, working, balance
sheet, management team, and compare thosewith the similar companies to them.
5 P i t t l k f b f
7/31/2019 Deepak Jon1
14/22
5 Points to look for beforepicking/deciding about anyone of
the stock Low price to earning ratios, comparedwith the similar companies.
Low percentage of institutional investors
Insiders buying the company stock or not
The company buying back its own stock
or not. A low debt to equity ratio, as compared to
similar companies.
7/31/2019 Deepak Jon1
15/22
OPPORTUNITIES
You can find terrific opportunities inneighborhood or at the workplace,
months or even years before newshas reached to analyst and fundmanagers they advice.
7/31/2019 Deepak Jon1
16/22
Buy the right stocks at wrong
price at wrong time and youwould suffer great losses.
7/31/2019 Deepak Jon1
17/22
6 General categories of stocks
Slow growers
Stalwarts (offer pretty good protection during recessions andhard times )
Fast growers (Small, aggressive enterprise that grow at 20-25% a year)
Cyclical (sales and profits rise and fall in regular)
Asset plays (sitting on something valuable that you know
about, but that Wall Street crowd overlooked ) Turnarounds (depressed, battered, and often can go
for bankruptcy )
7/31/2019 Deepak Jon1
18/22
13 Attributes of a perfect company
It sounds dull or ridicules
It does something dull
It does somethingdisagreeable
Its a spin-off The institution dont own
it and analyst dont followit
The negative rumors
abound. There is something
depressing about it
Its a no growth industry
Its got a niche
People have to keepbuying its product orservice.
Its a user of technology The insiders are buying
7/31/2019 Deepak Jon1
19/22
Portfolio construction insights
Invest in 5-15 company is advisable. It is moderate diversification.
The more stocks you own the more flexibility you have to rotate fundbetween them.
Make value integral part of portfolio.
You portfolio design changes with your age. Young people can haveaggressive portfolio while for old people defensive portfolio is advisable.
Let the winners run, and get rid of losers from portfolio. Distinctwinner and loser from fundamental perspective and not based on stockprice movement.
Rotate in and out of stock based what happened to its price as it relatedto story
Have a list of good companies, and buy during free falls, hiccups,collapse, drops etc
7/31/2019 Deepak Jon1
20/22
CONCLUSION
This Book offers insight into the mind of one of thegreatest money managers of all times.
With humor, Author helps us discover that he is a normalguy that thinks rationally, believes in research, asksplenty of questions, and gets caught off guard by themarket at times, just like anyone else.
Author brings the stocks he bought in his life, each withits own story, backed by facts.
If anyone like history, and are interested in investing,they will find this book a delightful to read.
According to our point of view, anyone thinking aboutbuying individual stocks must read this book before theyever make their first purchase.
7/31/2019 Deepak Jon1
21/22
MERITS & DEMERITS
MERITS Story format makes it easy to
read.
Not too technical.
Provides Practical Knowledge
of the investment marketthrough simple stories.
Teaches us to rely and believeon ourselves and our idea ifinvesting in share market.
How to think about and
research stocks in the market. After so many years later also,
author's advice still stands rocksolid.
DEMERITS This book makes you realize
that successful stock pickingtakes work.
If youre looking to get rich by
using this quick book, than thisone isnt for you.
7/31/2019 Deepak Jon1
22/22
THANK YOU!!!