Peter Lynch To Overplay Wall Street Audio Bookstore
We continue to explore Peter Lynch's investor's legacy.
Important attention must be paid to income, price and good business models.
Peter Lynch, in general, considered three of the quality of a good company: profitability, price and good business model.
Key points Peter Lynch advises to check (Peter Lynch method):
1. If you're impressed with a certain product or service, make sure it's a sufficient percentage of the company's total sales and makes a significant contribution to the profits.
2. Give preference to companies with strong cash positions.
3. Give preference to companies with a good price-to-income ratio, which is currently below the forecast.
5. Avoid slowly growing and cyclical shares.
As you can see, the method is quite simple.
Don't keep cash.
You must always remain fully invested, or you'll probably miss market lifts. Ignore the ups and downs of the market. Your profits and losses do not depend on the economy as a whole. Buy every time you've encountered an attractive idea with a history.
Know when to sell.
Send your shares when the company's long-term growth is slowing down. Sell stocks of fast-growing companies when it seems that there is no room for further expansion or when expansion only leads to poor sales and unsatisfactory gains.
Peter Lynch is the author of a number of investor-friendly books. His book Beating the Street (“Presotty Wall Street”), co-authored with John Rothschild, is a continuation of his own book One Up on Wall Street (”Play Wall.-Strite. It explains how to become an expert in his company and how to build a profitable investment portfolio based on his own experience, intuition and independent market research. Peter Lynch says that if you invest in a good growing business, you shouldn't worry about the stock price situation. If the company ' s profits are growing, there is an increase in cash, sales are rising, and the price of equity falls or is only costly because of the country ' s economic crisis, don't doubt that it's going to turn to its place sooner or later. When the market moves upwards, the company ' s stock prices will rise to the height it has set. For example, the price of shares is often found to be on the spot for 1 to 2 years, followed by 100 per cent and more per cent for the third year. It is therefore not reasonable to judge the success of the hedge fund on the basis of monthly indicators, especially if the fund has clearly demonstrated its ability to generate high income over two or more years. Patience is needed to get what you deserve.
