One Up On Wall Street
Key Learnings From Section 3
Peter Lynch lists of a few things which one can take from the last section from the book:
- The market has a high chance of declining sometime in the future.
- The decline in markets offers a great opportunity to buy stocks in companies that one likes.
- Even if one tries, they cannot predict the market direction over a year or two.
- There are different risks and rewards for different categories of stocks.
- One is capable of making a lot of money by compounding a series of 20–30 percent gains in stalwarts.
- Just because a company is doing poorly doesn’t mean it can’t do worse.
- Just because the price goes up doesn’t mean one is always right.
- If a price goes down it doesn't always have to be that one is wrong.
- One loses technique if they buy a company with mediocre prospects just because it is cheap.
- Selling a fast grower which is outstanding just because it's stocks seem overpriced is a losing technique.
- Fast growers don't stay the same way forever and companies don't grow without reason.
- A stock doesn't know that one owns it.
- One doesn't lose anything by not owning a successful stock
- One can bet when it seems favourable.
- There is always something to worry about.
- An investor should not become attached to a winner in a way that one stops monitoring the story.
- One should keep an open mind to new ideas.
- If one isn't confident about beating the market then they should invest in mutual funds.
These are a few takeaways amidst many from the last section of his book.