Common sense approach to investing is being observant. It also means, when one (buys from) sells to desperate, one would always (buy cheap) sell expensive. Some of the important messages are: When one (buys) sells in desperation, one always (buys expensive) sells cheap. Lynch has very generously shared tons of his experiences and investment philosophy, in simplest of language, while managing the money at Fidelity from 1977 to 1990 (famous Magellan fund), with all of us. Simplicity, lucidity and the flow of book is absolutely amazing. I would start with stating that the book is a great example of common sense approach to investing. Thought of penning down take aways from the book. This book is good for giving ideas on how to go about looking for the "10 baggers" as lynch calls them and there certainly have been many people to make money from this type of investment, however, I would suggest that you read some other titles on the subject.One up on wall street by Peter Lynch Just finished reading one of the greatest books on investment “One up on wall street” by renowned money manager Peter Lynch. Yet some aspects of his theory need more research as they can sometimes glorify the profits but not give a full and clear idea of the risks. Lynch admits that this type of investing can certainly be dangerous as it's a speculative investment as opposed to investing into companies with long term history of increasing dividends and increasing profits. Lynch warns against this due to it's dangers and stockbroker commission, stating it's not feasible for an individual investor. often does to make a quick profit as prices rise on a hot stock. He claims investing in stocks in which people know nothing about is something that Wall st. He states that this type of research is just as good if not better than listening to the analysts and investing in stocks which you have no idea about. This is one of his theories on how the average investor can "beat the street".
This set him out to find more information on the company until he finally invested. like it, ate the donuts, liked them and saw more stores opening in the area. He uses the example of Dunkin Donuts as his example. only invest in stocks where you have an insight into the business. He uses a theory similiar to Warren Buffetts "circle of confidence". Lynch describes how the average individual can spot things that could take Wall St months if not years to find. Here he takes the theory a little further in search of what he calls a "ten bagger" a stock that will return your purchase price 10-fold. This book is a sequel to Lynch's "Earn and Learn" Where he introduced the basics of the stock market and what the numbers all mean.
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