These are some of my notes (worth remembering) from the wonderful book : One up on wall street ~ ‘Peter Lynch’ Part I Preparing to Invest
– Don’t overestimate the skills and wisdom of Professionals.
– Take advantage of what you already know
– Look for opportunities that have not yet been discovered and are ‘off the radar scope’ of the markets
– Invest in a house before investing in stocks
– Invest in companies, not in in the stock market (This is the Buffett principle as well)
– Ignore short term fluctuations (This is so much easier said that done… However utmost critical in my view)
– Large profits can be made in common stocks
– Large losses can be made in common stocks
– Predicting is futile (be it interest rates, economy , or movement of the markets)
– The long term returns from stocks are both relatively predictable and also far superior from long term return of bonds.
– Keeping up with the company in which you own the stock is like playing an endless game of stud poker hand
– V IMP : Common stocks are not for everyone, not even for all phases of a person’s life
– The crux of the book : The average person is exposed to interesting local companies and products years before the professionals.
– Having this edge will help you to stay ahead in the stock markets
– In the stock markets , one in the hand is worth ten in the bush.
Notes on Value Investing to be contd’ in future parts…..
August 3, 2012 Valuation