#One up on wall street summary how to#
So, “the trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them.” It would be wonderful if we knew how to avoid the market setbacks with timely exits – but then everybody would be rich. In essence – as Warren Buffett often says – buying a stock is not so different from buying a whole company, and you would think twice before buying a company judging solely on the current market trends. Because, only then, you can be sure that you’re not buying a lottery ticket, but a stock you actually believe. It’s all about research, about finding out everything you can about the company’s financial condition and competitive position, as well as its vision and plans for expansion. More precisely, it means that you should never invest in any company before you’ve done your homework on the said company – no matter what the so-called professionals say about its prospects. When it comes to investing, the only guy worth listening to is yourself. So, when the guys at respected brokerage firms talk, contrary to popular opinion, you should not be listening, but, instead, snoring. In his opinion, “professional investing” is an oxymoron on par with phrases such as “deafening silence,” “learned professor,” and “military intelligence.” In other words – there’s no such thing. “Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert,” writes Lynch. So, it may come as a shock to you that his number one investing rule is to “stop listening to professionals!” That’s right: ignore the stocks Lynch buys, take no notice of the hot tips from brokerage firms, and disregard the latest “can’t miss” recommendations from your favorite newsletter! And do all this – in favor of your own research.
#One up on wall street summary professional#
Lynch is widely regarded as one of the greatest professional investors of all time. So, get ready to discover the benefits of self-directed investing and learn how to identify the superior companies that can grow tenfold, the famous “tenbaggers” in Lynchian parlance! The Wall Street oxymorons vs. However, in “One Up on Wall Street,” he claims that anyone can be a better investor than him just by following a few simple guidelines. During his 13-year tenure, he averaged a 29.2% annual return, increasing assets from $18 million in 1977 to $14 billion in 1990, and making the Magellan Fund the best-performing mutual fund in the world. Investing icon Peter Lynch came to prominence in the 1980s as the manager of the Magellan Fund at Fidelity Investments.