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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. 

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