“The true contrarian waits for things to cool down and buys stocks nobody cares about, and especially those that make wall street yawn” “He’s concerned after the market has dropped or the economy has seemed to falter, which keeps him from buying good companies at bargain prices” “When enough positive general financial news filters down so that the majority of investor feel truly confident in the short-term prospects, the economy is soon to get hammered” “It is important to be able to make decisions without complete or perfect informations…it is crucial to be able to resist your human nature and your ‘gut feelings’” “ Only invest what you could afford to lose without having any effect on your daily life in the foreseeable future” As to whether they are going to be higher or lower in two to three years, you might as well flip a coin” “Absent of a lot of surprises, stocks are relatively predictable over ten to twenty years. They accept their fate and go onto the next hand, confident that their basic method will reward them over time” “Consistent winners also to the fact that (they will occasionally lose to a hidden royal flush after being dealt 3 aces. “To the rash and impetuous stock player, my advice is: Forget wall street and take your mad money to Hialeah, Monte Carlo, Nassau… At least in those pleasant surroundings, when you lose, you will be able to say you had a great time doing it”
****“Stocks are most likely to be accepted as prudent at the moment they are not” In bonds you are nothing more than the nearest source of spare change” You’re a partner in a prosperous and expanding business. “ In stocks you have got the companies growth on your side. “What a difference a couple of percentage points can make, compounded over three centuries” In other words, I continue to think like an amateur as frequently as possible”
“The stocks I try to buy are the very stocks that traditional fund managers try to overlook. Size: Is measured by multiplying the number of outstanding shares by the share price “You will never lose a job on wall street buying IBM” “If a stock is down but the fundamentals are positive, its best to hold on and even buy more” “ The secret of his success is that he never went to business school-imagine all the lessons he never had to unlearn”
LYNCH ONE UP ON WALL STREET FULL
“Continue the tradition of buying asset rich companies at fifty cents and waiting for the marketplace to pay the full amount” “The ups and downs of the market are irrational and completely unpredictable”
“It seemed to me that most of what I learned at Wharton, which was supposed to help you succeed in the investment business, could only help you fail” When I hear theories like these, I always remember the rooster” It sounds silly now, but everyday the experts confuse cause and effect on wall street…’a trendily has been broke, a republican is in office, stocks are being oversold, etc. “In centuries past, people hearing the rooster crow as the sun cam up decided that the crowing caused the sunrise. “Logic is the subject thats helped me the most in picking stocks, if only because it taught me to identify the peculiar illogic of Wall Street” “Investing in stocks is an art, not a science, and people who have been trained to rigidly quantify everything have a big disadvantage” “Small investors tend to be pessimistic and optimistic at precisely the wrong time, it is self defeating to try to invest in good markets and get out of bad ones” “Among amateur investors, for some reason its not considered sophisticated practice to equate driving around town eating doughnuts with the initial phase of investigation into equities”Ĭhapter One: The making of a stock picker “I stumble onto the big winners in extracurricular situations the same way you should” “I developed a passion for making ten times my money early in my investing career” “The more right you are about one stock, the more wrong you can be on all others and still triumph as an investor” One Up On Wall Street Peter Lynch Jack Doherty
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