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Posts Tagged ‘peter lynch’

If I could avoid a single stock, it would be the hottest stock in the hottest industry, the one that gets the most favorable publicity, the one that every investor hears about in the car pool or on the commuter train- and succumbing to social pressure, often buys.

~Peter Lynch, One up on Wall Street- Chapter 9: Stocks I’d Avoid

Apple seems like the most popular stock these days, and I think even David Einhorn’s Greenlight bought some a quarter or so ago. what I worry about with Apple is a reversion to the mean, or at least being priced as if the pendulum has swung upwards as to not price in the possibility of mean reversion. At one point, there was a slight edge in the name because the company didn’t record all of its iPhone revenue during the quarter, but the accounting rules changed and things are a lot more comparable. after the sell-off in equities towards the end of 2008 and in early 2009 (hedge fund liquidations and other market turmoil), Apple was downright cheap in this observer’s opinion. Now, Apple is the second largest company by market cap in the United States ($329B as of this writing) after ExxonMobil ($427B) and according to ZeroHedge is also a hedge fund hotel (based on data from Goldman Sachs on widely held hedge fund equities). the company’s large cash balance needs to be adjusted for when looking at the multiple as Apple clearly doesn’t need all of that cash to operate, so this is sort of masking things a bit. There is further room to grow in video, with rumors of a push into home entertainment by Apple as their next product line. on the other hand, Google’s open system philosophy seems to be more likely to win in the long run.

Even so, Apple seems to have come out ahead over the past decade regardless of whatever challenges it faced, and this is likely down to not only great products but also great management, something that is surely difficult to judge save for their capital allocation decisions which have been pretty good. Although Apple’s tangible operating assets are fairly small, Apple is also a retailer. Capitalizing for operating leases, the company still has fairly minimal tangible operating assets, although viewed on a relative basis, Apple does run a fairly large retail operation and by the metrics I have seen has been the world’s number one retailer for several years. it was recently reported in the new York Observer from reliable sources that the world’s largest Apple store would be coming to Grand Central, although the company has not started approval procedures. the company also has plans to open a Shangai store, which will be the biggest store in China. in a similar fashion to the sky scraper index and with so many people on one side of the trade, maybe Apple is one stock to avoid these days.

Eric Savitz recently asked in a blog post if you would rather own Apple (AAPL) or Microsoft (MSFT) + Cisco (CSCO). My choice would be the latter. Maybe a better question that I will pose is this: which would you rather own for the next decade- Apple (AAPL) or Google (GOOG)?

Apple (NASDAQ: AAPL) & Its Plans for Biggest Ever Store Seems Like Signs of a Top – Apple & The Skyscraper Indicator « Special Situations Monitor

Learn to Earn: a Beginner’s Guide to the Basics of Investing and Business

“Public companies are everywhere, and they surround you from morning to night. . . . nearly everything you eat, wear, read, listen to, ride in, lie on, or gargle with is made by one. Perfume to penknives, hot tubs to hot dogs, nuts to nail polish are made by businesses that you can own.” —from the Introduction. McDonald’s, the Gap, Circuit City, Gillette, CBS, and thousands more . . . anybody can own part of big and small companies. As companies grow and prosper, you can too. Whenever burgers are eaten, sweaters are purchased, batteries are used, and faces are shaved, you’ve got a piece of the action. From Alexander Hamilton to Warren Buffett, people have been making big money by investing in the corporations and institutions around them. Mutual-fund superstar Peter Lynch and author John Rothchild explain what’s not normally taught in high school —how the stock market helps you and how it helps the country. By understanding how and why the stock market works when you buy

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My finances are not in good shape due to the recession;I am not broke but resources are dwindling rapidly.
One of my friends suggested that I could take heart in this desperate situation by playing on the stock bourses through what is called intra-day trading without really putting any money and just by pocketing the differences.After this advice, I read a lot but it all sounds too naive to be true.Big names like Warren Buffet,Peter Lynch and .Ben Graham were sounded but all of them sounded a note of caution while playing short- term.
Now I am utterly confused.
Can anyone please enlighten whether I can really earn money on intra-day trade and if so what are the safe methods to play without losing whatever little I put in.

The stock market is all about risk-reward. if you don't have anything to lose, you don't have anything to gain either.

sorry.

You can make money in intra-day trading if the shares you buy rises that very day. that is a very risky thing to do because no one knows how a share will perform in a day. In order not to lose you need to take up the shares you bought and wait until it share price rises enough for your to pay your brokerage fee and makes a profit.

You can find all the answers to your questions about intra-day trading by checking out www.SmarterTradingSystems.com if you email the guy on there he is super helpful and always replies quick.

Hi,

First of all, you should never risk anything which you are not willing to loose. Your finances are already in a bad shape and taking a small risk may not sound bad at all. True, intra-day trading is very rewarding but then again you need to know that looses are a part of the game. if you do end up with a good broker, chances are you will be making money 3 out of 5 days a week but trust me, you cannot avoid the looses. you need to face it somehow or the other. as far as I know, the people who earned money in the markets with any form on trading – short, medium or long term, have started out with looses, thats how you learn so take it for sure, you will be seeing some looses. but that just does not mean, you wont make money and will only run into looses, you are risky your hard earned money, why dump it with anyone to work on. Learn the markets yourself and trust me, you will be rewarded. Its all about understanding, patience and how much you have learned from your mistakes.

Warren Buffett and the other guys you've mentioned were never short term traders, they were long term investors and they had a talent to pick up companies to invest in when they were running cheap.

so go ahead and trade and yeah, make sure you use your stop losses.

good luck!
Sam

If you want to make money investing, use etrade trading. Etrade makes making money investing with their tools and information on their site. you can dind more information about making money investing at:

http://www.makingmoneyinvesting.blogspot…

Good luck! see you at the bank!

Yes it is possible but equally you will lose also. And of course you have to spend some money for the demat and brokerages and joining fees, tax etc. so some investment has to be made.

Is it true that one could make money in stock market without really investing a dime?

Hello and welcome back,

Last Friday, I was the main celebrant at the funeral of Father Jim Field, the pastor of Incarnation Parish in Melrose, who had been battling cancer for many months.

Many parishioners were able to come to the Mass at his parish church.

It was a Friday morning, but the church was packed. many priests accompanied me.

He was a great example of courage and faith as he prepared for death. I gave him the sacraments when I visited him in the hospital a few weeks ago. We had a wonderful visit. We were able to pray and talk together.

His parishioners were very, very supportive of him throughout his long illness.

He will be sorely missed, but fondly remembered.

Friday evening, there was a concert by the Paris Boys Choir at the Cathedral.

They were from Neuilly-sur-Seine in Paris. they call them Les Petits Chanteurs de Sainte-Croix de Neuilly.

The concert was stunning. the choir, I think there were about 50 or 60 boys, performed beautiful polyphonic music in Latin and French.

They sang music by composers such as Palestrina, Victoria, Bach, Mozart, and French composers Fauré, Poulenc, Duruflé and Franck.

While here in the United States, they performed at St. Paul’s in Cambridge, as well as new York and Washington.

On Saturday, I officiated at the wedding Mass of Peter Lynch’s youngest daughter at our Lady Star of the Sea Parish in Marblehead.

Peter Lynch’s daughter Elizabeth married a French count, Gonzague de Montrichard, a very fine Catholic gentleman.

Peter Lynch, a Fidelity executive, has been involved in the Catholic Schools Foundation and is a promoter of Catholic philanthropy.

The wedding was very beautifully executed. the boys from our choir school at St. Paul’s in Cambridge sang. the reception was at the Lynch’s home. the dinner was preceded by spectacular fireworks — they could have been in Washington, D.C. at the mall for the Fourth of July! There was 40 minutes of music in the background, and the fireworks show was over the water. it was quite amazing.

I didn’t stay for the dinner, which started quite late — about 10:00p.m.

I was very happy to meet many of the groom’s family. about 60 of his family came from France.

Peter and Carolyn Lynch were radiantly happy with the wedding, which was good to see. they do so much to help so many people.

I was at Our Lady Help of Christians in Newton on Sunday for their annual Italian feast in honor of our Lady of Mount Carmel.

They celebrated it on the Sunday after the actual feast, which is on July 16.

I celebrated the 8 a.m. Mass in Italian and the church was packed.  Msgr. Deeley had just preached a triduum in Italian, three days of Masses.

Unfortunately, I was not able to stay the whole day, but I understand that there was a procession with the statue of our Lady in the afternoon. they even have an angel on a cord that comes zipping across the sky as part of the procession!

That afternoon, I participated in the 36th Annual Benefit for the City of St. Jude at a celebration in Malden.  As it does each year, the event drew hundreds of people and raised thousands of dollars for the charitable ministry and works of mercy of the City of St. Jude in Montgomery, Alabama.  

This year’s celebration was bittersweet because the local founder of the benefit, Malden Police Commissioner Anthony Spadafora, passed away in May. 

His wife, children, grandchildren and extended family did a great job in carrying on the generosity of “Papa Tony.” 

It was wonderful to have the opportunity to gather with local clergy at the event from Jewish, Muslim and other Christian faiths.

That night, I had dinner with Archbishop Hughes, Msgr. Francis Kelly, and Msgr. Cornelius McRae at the small cottage that Msgr. McRae has in Marshfield. Archbishop Hughes, who is originally from Boston, was back home on vacation.

The archbishop and Msgr. McRae had been out sailing that afternoon, and they invited Msgr. Kelly and me to join them for dinner and conversation. it was wonderful to catch up.

Archbishop Hughes showed us a book they had just published about the Church’s response to Hurricane Katrina. it is called “The Archdiocese of new Orleans and Hurricane Katrina: a story of Hope in a Time of Destruction,” and is soon to be released.

Bishop Charles Dufour of Montego Bay was here Tuesday for a visit. I knew him from the days when I was bishop in the Virgin Islands. I had been the Apostolic Visitator for the seminary in Kingston, where he was the rector at the time.

Bishop Dufour is now the Bishop of Montego Bay, which territorially is the largest of the three dioceses on the island of Jamaica.

The archdiocese, of course, is Kingston, and Mandeville is the newest diocese, and then there is Montego Bay.

It’s a very poor missionary diocese with a small number of Catholics.

The bishop is an extraordinary individual. he is a priest of the Archdiocese of Kingston. he knows many of the Jesuits who have been missionaries in Jamaica, and was here visiting some of them.

On Wednesday, for the second time since being named archbishop, I was called for jury duty.

I reported with my fellow prospective jurors and we first listened to a presentation given by one of the judges to prepare us for jury, and then there was a video presentation. 

I was not chosen to sit on a jury.  I guess they didn’t need me! 

In Massachusetts there is a system where people are called to serve on a jury for one day or for one trial.  Of course, that means there is a fairly heavy turnover and people are called frequently. 

I haven’t been selected to sit on a jury either time I have been called, which is too bad. I was looking forward to serving.  Jury duty is an important civic responsibility, in order that citizens have the opportunity to have their cases heard by fair minded peers.  We should remember that if it was our case being heard, we would want good people on the jury, and so we should respond to this important call to service as it is asked of us.

The patronal feast for the Brazilians is the feast of Nossa Senhor Aparecida (Our Lady Who Appeared), which is on October 8. they always have a Mass in the middle of the summer because it is easier to gather people. they have an outdoor Mass at the Fatima Shrine in Holliston. I have joined them in the past, but was unable to attend this year but I asked them to send some photos to share with you.

It’s always an extraordinary event with many, many young families.

 

Finally, last month the Holy Father celebrated the closing of the Year for Priests at the Vatican. I hear it was a wonderful celebration with thousands of priests and bishops in attendance.

Unfortunately my obligations in Boston prevented me from attending the event so I was happily surprised when I received a memento of the celebration in the mail.

The pope’s coat of arms

Cardinal Hummes, the Prefect of the Congregation for the Clergy, sent me this stole that was designed for the occasion.

Cardinal Seán's Blog » Our Lady of Mount Carmel

Anybody who has studied investing has heard of the random walk hypothesis and the efficient market hypothesis. Both support the idea that you cannot beat the market, that most mutual funds fail to beat the market, that those who do beat it through luck or taking on more risk, and that monkeys throwing darts at the Wall Street Journal can pick better portfolios than most professionals.

Then, you scour the internet and it is full of back-tested results from "gurus" like Peter Lynch, Joseph Piotroski, Ben Graham, Joel Greenblatt, etc. that beat the market. Validea.com and AAII.com are two examples of sites that show these results.

So, what are your thoughts? Can you beat the market or not?

the stock market has an upward drift over time, so just being long a long time, you can have market returns, and you can always leverage this, so you can have a return greater than the market.

Peter Lynch was a portfolio manager during a great bull market. so even some of his bad ideas weren't that bad.

it's really hard to beat it day to day. some people have done it, but most haven't.

there are lots of academic studies that show the market is not efficient.

just today i read an article about an awesome arb on BP credit default swaps vs. the equity options that, in theory, allowed a 158% annual return. one hedge fund did have this trade on: http://www.zerohedge.com/article/how-mis…

there are always opportunities but you can't catch all of them. there is just too much information in the world.

To beat the market??? Are you crazy, man??? the market is the sole friend in the investing. Follow the market an it rewards you.
Let's see our blog how to make friendship with the market.

You can't beat the market, but you can try to ride with it, and reap it's rewards.

I think the closer you are to the inside on the market the better off you are. One problem being that you have no control over the swings, because of the high liquidity. SOME people ie brokers give advice on what people should do and then take fees ie mutual funds. however, all that glitters is not gold, and many have lost much of their retirements as a result of the sttatus quo. the real truth is that anyone can learn to invest and make money. it takes dedication and a real reason for wanting to do it (a good why to get you through the "hows").
a good idea might be to copy those who have done well ala Warren Buffet and George Soros. I think that line will produce plenty of information for you.

The difference is subtle in theory, deafening in practice.

It boils down to the fact that day-to-day the market place is game dominated by the choices of human beings. Human beings are not always rational, logical, organized, or disciplined. Particular kinds of people with exceptional insights and skills can run through the system efficiently IF they stick to the particular kinds of things they do exceptionally well.

On the one hand, over long periods of time (decades) batting averages fall to average for huge numbers of pros. On the other hand, the market does some clearly illogical things. no mathematical formula or efficient market hypothesis can logically explain the Flash Crash of this year or MSFT doubling in price between March and Dec of 2009. (just to pick two things off the top of my head)

To give you a simple example from my own non-random (Greenblatt-ish) wins…at several points during the Euro panic this spring I purchased securities for less than 50% of their cash value. not, mind you, stocks with a calculated, theoretical book value, but securities with an actual turn-in-for cash value that was fixed…all you had to do was wait…6 months. the trick — there is always a trick — is that the payout was in EUR. Logically — grin — the fear driving the selling was that the Euro was going to collapse. Mathematically, however, the fools were valuing the EUR at 50 cents to the USD…not even in the widest dreams of the Beck fanatics was that going to happen in the next 6 months. I might look like a stock market genius on paper (to steal from Greenblatt) but I can do math and have nerves of steal.

BTW — the EUR is currently trading at $1.30+ and the securities are paying out now.

Can you beat the stock market or not?

Peter Lynch's one up on Wall Street "talk freely of what kinds of actions should be chosen. in general, Peter believes it can move more large companies, small and tend vice versa. therefore, to identify what he calls" ten Bagger "or storage facilities, has increased ten times the value, is more likely that small companies with a market capitalization of less than say $ 10 billion.

Peter Lynch-based company also divided into six general categories, which has itsunique characteristics. Based on these six categories of investors in a position, which is why investing in these companies, and therefore know the expected return on all firms. The six general categories: slow-growing, hardcore, fast growers, cyclical plays, assets and activities.

Slow growers - As the name suggests, this is business slow to grow the way that only slightly more than the nation's gross domestic product. slow-growing plant has two reasons. First,they are growing rapidly in its early years and had saturated the market or the second, do not make the most of their opportunities. The book with utility companies so slow grower. during the period 1950-1970, but they are fast growers. Since the increases in power consumption (people install air conditioning, heating, fridge, etc.) increased energy consumption and therefore their growth rate. This does not happen again. A company may inevitably be a slow growing plant. A fast growingPast will be slow breeders tomorrow. example of the sector in this category include: rail, aluminum, steel, chemicals, non-alcoholic beverages.

Supporters - Those are not growing rapidly, but are growing faster than a plant that grows slowly. most large corporations are irreducible, producing enormous cash flows. Because of their enormous size diehards will not move much, and Peter is always trying to make a profit if you are on 30-50% of its value in a race soon. some supporters are: Procter &Gamble, General Electric, Bristol Myers and Kellogg.

Fast Growers - The name says it all. These categories are for companies with high growth rates. here are ten potential of the excavator. five other categories, do not get the same chance of your next ten excavator. Growers are not necessarily faster in the fast growth. you can grow quickly in a slow growth of the sector. For example: Walmart retail heavy, Marriott 2%The growth of the hospitality industry, Anheuser-Busch, in a slow-growing beer market, or Taco Bell in an area not-so-fast fast food. however, there are many risks associated with investments in rapidly growing ones. The trick is to understand how much they pay and when to stop growing them, because the party is finally over.

Cyclical - not all companies can benefit from consistent all the time every time. General increase in economic profit and loss on a regular predictable, more oftenMoving in tandem with the economy. Companies that can be considered cyclical, are: airlines, automobiles, defense companies and chip industry. For defense contractors, is not cyclical relationship with the economy but the White House policy. For the chip industry is cyclical with the cycle of upgrading your computer. Timing is everything in cyclical. unlike other categories, Peter avoids cyclical trading on low P / E usually means that the cycle is currently at itsPeak. although this rule does not work 100%, it works well enough to avoid collecting cyclical companies that fall even lower.

Turnaround - These are high risk high reward preposition. in general, there are specific problems that plague society. Moreover, if the company fails to resolve this particular mess, probably will end up in bankruptcy court. however, there are some interesting reasons to invest in a turnaround. one, of course, is the goal. once the problem is fixed and released, the stock price to rise strongly, in line with what his colleagues in commercial evaluation. The other positive factor for this investment in a new trend is that it is less affected by overall market conditions. Market rises can be reversed top to bottom and vice versa. could be a contemporary example of a trend reversal with Altria (MO) in early 2000. Faced with hundreds of millions of smokers has decreased activity, the stock price so low that you can buy 5 times earnings and 10%Dividend yield>. Altria also owned a stable force controlled and Miller (later sold). Turnaround investors will see action if the problem can be solved, then the investment in Altria will be richly rewarded. Sure enough, reduce the problems of litigation and the stock price has increased by four since. of course, they are not always successful turnarounds. bankruptcy K-Mart is another example of the past.

Asset Plays - This is the kind of society thatusually just a hidden asset that should not be listed in the budget. All activities should be included in the budget, of course. But the enterprise carries on business often do not list the class asset value of the market. For example, the value of Real Estate Holding, amortized over the current financial year rule. meanwhile, the country itself is probably worth much more than the purchase price. also qualified company carrying large tax loss carry forward as an asset.

That's it. Allsix categories of shares by Peter Lynch. Hope that you will not get into a deep sleep. As boring it may seem, this is an important lesson that will make your investment journey will be much more exciting and meaningful.

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Dividend Yield » Blog Archive » Learn from Peter Lynch – Part III

which book by peter lynch is better to help me understand about the stock market, how i can benefit, and why it is good? i bought one up on wall street and was wondering if i made a mistake. which book is just plainly better at explaining.

If u really want to learn, then why ask for a differiantion ? read both (understand 2 sides of coin) so to say.

What Book is better if I want to learn about how Wall Street works, One Up On Wall Street or Beating Street?

Recently I have picked up Peter Lynch's "Learn to Earn" book. he talks about a market multiple in the book and does a cross study of Nike and J&J and says that the market multiple was more than what J&J's PE was. Where can I find up to the minute or whatever market multiples? also, Where could I find inflation rates as well. I know that they are based upon the Consumer Price Index but I am not educated enough to figure it out based upon that. Thirdly, since I am in the education stage of stock investing, I would like to know if anybody can recommend a stock market simulator game that doesnt coincide with the real market but is simulated for the sake of learning at a faster pace than waiting for the markets. if I could find a game that does correspond to the markets that would be nice as well. of course I am looking for free games and no money involved. (Just thought I would make that clear) thanks for the info

Market multiple and inflation rates and other…?

Would you recommend any one of these books to all levels of investors and why?

Rich Dad Poor dad by Rober T. Kiyosaki?
The Weathly Barber by David Chilton?
The lazy Investor by Derek Foster?
Learn to Earn by Peter Lynch?
Real Money by Jim Cramer?
The Intelligent Investor by Benjamin Graham

Have you read and what do you think of the following stock investing and financial books?

Beating the Street by Peter Lynch – Audio Book Download

When Peter Lynch Talks
Smart Investors Listen!

As former head of the Magellan Fund, the most successful equity mutual fund in the country when he rain it, as well as current trustee of the Fidelity group of funds – Peter Lynch is THE source for stock and mutual fund investing. in Beating the Street, Lynch’s goal is simple: to teach you how to have more money tomorrow than you have today. he believes success depends on an investor’s ability to ignore the worries of the world long enough to allow their investments to succeed. Lynch provides sound advice on the following topics:

Shopping for stocks: why shopping malls are great investment guides
Looking for a few good stocks: how some investments lead to others
Prospecting in bad news: why conventional wisdom may not be the final word
Offering a one-on-one consultation with one of the most successful stock analysts around, Beating the Street will help you make the right investment choices.

Click to see more from this Presenter

Beating the Street