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One Up On Wall Street Summary – February 2022

Author: Peter Lynch

Short Summary
One up on Wall Street (1989) is one of the best sellers and classic books of investment by Peter Lynch. It is a guide on successfully investing money in the stock market. Peter Lynch also talks about the challenges that come in the way of investing and portfolio, or process in picking stocks. If you are an investor or aspiring investor then this book is great for you even if you don’t have much knowledge regarding this field.
one up on wall street
Source: amazon.com

Detailed Summary

There are a lot of misconceptions about the stock market, and a lot of people think that it’s something that’s only for experts. But that’s not true! Anyone can be a stock market investor, and it can be a lucrative job.

A stock market is a place where people buy and sell stocks, which are shares in companies. When you buy a stock, you become a part-owner of that company, and you can make money when the stock price goes up.

Investing in the stock market can really be a thing for smart people to do, especially if you know what you’re doing. But it’s also important to remember that it’s a risky investment, and you can lose money if you’re not careful.

One up on wall street is a handbook by Peter Lynch in which he mentioned some of the points you need to know before investing in stocks.

One Up On Wall Street Key Points

Know the categories of stocks to find out the best one for you

Making smart investments is essential to the success of any business. Not only do you need to invest in the right areas. There may be many types of investments based on your budget, risks, and your personality but according to Peter Lynch, Stocks have six categories that you just know before investing to decide where to invest or where to not. Let’s discuss one by one:

Slow Growers: Many companies are based on a large scale but therefore, grow slower than others. Those are Slow Growers.

Stalwarts: Some companies are more stable, and you can afford to wait a little longer to make it again. These are the stalwarts – they are a little bit riskier than the first one, as they’re growing at a rate of 10-15% per year. Sell them if you make a 30-50% percent gain! If you invest in these companies, always ask yourself first, can these companies keep up with their fast growth rate? If you find risks then don’t invest.

Cyclicals: Cyclicals are companies that have their profits or losses move in concordance with the business cycle. This means that they tend to do well when the economy is strong, but they can also suffer greatly during times of financial uncertainty.

One disadvantage of this type of stock is that they produce goods that consumers will postpone buying in times of financial uncertainty. This can lead to a decrease in the company’s profits and, ultimately, a loss in the value of the stock.

Some characteristics that make it easier for investors to spot ten-bagger stocks

When it comes to finding great investments, sometimes it helps to think outside the box. That’s where the term “ten baggers” comes in.

What’s a ten-bagger?

Lynch uses this term to describe a stock that has gone up ten times its value since the time of purchase. So, what makes a ten-bagger so special? In a nutshell, it’s a stock that has a lot of room to grow.

Fortunately, some characteristics make it easier for investors to spot these stocks. For example, a ten-bagger often has strong fundamentals. This means that the company is profitable and has a solid track record. In addition, the stock is usually undervalued by the market. This means that it’s selling for less than it’s worth.

As an investor, it’s important to keep an eye out for these stocks. By investing in a ten-bagger, you can potentially see huge returns on your investment.

If you’re looking to invest in a ten-bagger, it’s important to do your homework and thoroughly research the company. By taking the time to understand the business and its prospects, you may be able to spot a winning investment.

More importantly, look for companies who’ve got a niche, Warren Buffett does the same thing.

Indicators to spot the non-valuable investments

Making poor investments can be costly to your company. Not only do you lose the money you put in, but you also lose any potential future profits. So it’s important to know how to spot non-valuable investments. Here are five key indicators:

  • The first thing you should consider is whether the company is in a hot industry or not, as the stocks may prove to be overpriced.
  • If the industry is over advertised such as in headlines the next Facebook/amazon then it’s better to avoid that company.
  • Next is to look at the diversification of the company because if the company is buying shares from diverse industries then it’s a bad sign to invest in there.
  • Look for customer relations. If the company is dealing only with some particular customers then it may be possible they’ll leave.
  • Look out for whisper stocks because sometimes these companies advertise as they’ll do something miraculously but these are only cheap marketing stunts.

One up on the wall street quotes

“It takes remarkable patience to hold on to a stock in a company that excites you, but which everybody else seems to ignore. You begin to think everybody else is right and you are wrong. But where the fundamentals are promising, patience is often rewarded.” Peter Lynch

“Average investors can become experts in their field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.” Peter Lynch

One up on the wall street reviews

The Revolutionary book everyone must remember to read and special for those people who Are in the line of the share market. Atharva Zambra

One of the simplest and best investment books I have ever read. It teaches us the ways to stick to long-term investment in the stock market. The Engaged Coach

To whom I would recommend the One up on the wall street summary?

  • The investor who wants to invest and earn profit.
  • A retired person with valuable assets looking for a profitable investment.
  • Students of finance want to know more about stocks and investment.