Deepak Jon1

7/31/2019 Deepak Jon1

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BOOK REVIEW FOR

One Up On Wall Street

(The international best selling book thatevery investor should own)


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Peter Lynch's Investing Insights

AUTHOR

PETER LYNCH

with JOHN ROTHCHILD

PUBLISHED IN THE YEAR :1989


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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.


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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.


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STEP 1

FINDING A COMPROMISING

COMPANY


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STEP 2

RESEARCH

(Helps to sort out a goodcompany from a bad one)


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NEWTON

If I have seenfartherit is by standing upon

the shoulders of Giants


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LOGIC

Logic is very important in

stock picking as it helpsyou to identify peculiar

illogic of Wall Street.


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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.


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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.


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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.


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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?


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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


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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.


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OPPORTUNITIES

You can find terrific opportunities inneighborhood or at the workplace,

months or even years before newshas reached to analyst and fundmanagers they advice.


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Buy the right stocks at wrong

price at wrong time and youwould suffer great losses.


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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 )


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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


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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


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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.


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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.


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THANK YOU!!!

Deepak Jon1

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