One Up On Wall Street: How To Use What You Already Know To Make Money In The Market

Product Information

When I'm interested in a company because of a particular product, the first thing I want to know is what the product means to the company in question. What percent of sales does it represent? Pampers was more profitable than L'eggs, but it didn't mean as much to the huge P&G. One risk is that small fast grower tend to be overzealous and underfinanced, so look for healthy balance sheet and substantial profitability.

On the bright side, if a company has been depressed and the inventories are beginning to be depleted, it's the first evidence that things have turned around.Dördüncü aşamada yine etrafımdaki kalabalık eksilmekte ama bu kez bana hangi hisse senetlerini almam gerektiğini söylüyorlardır. Dişçinin bile aklında birkaç tüyo vardır ve partiyi izleyen günlerde gazeteye bakınca bana önerdiği hisselerin hepsinin değer kazanmış olduğunu görürüm. Tanıdıklarım borsa hakkında, üstelik haklı tavsiyelerde bulunmaya başlayınca artık borsa en yüksek noktasına çıkmış, düşmeye hazırlanıyordur." (96) Understanding which businesses are growing and which companies offer better products than the competition and industry insiders also recommends. Avoid companies that start to buy businesses in areas in which they do not have experience or that are not directly related to the central business where they can obtain results above the cost of capital. Lynch calls these types of companies “diworsifications.”

Lynch offers easy-to-follow advice for sorting out the long shots from the no-shots by reviewing a company’s financial statements and knowing which numbers really count. He offers guidelines for investing in cyclical, turnaround, and fast-growing companies. Cost reduction: can the company reduce the cost of materials, the cost of labor, or the fixed costs incurred each year? In no-growth industries like bottle caps, coupon-clipping services, oil-drum retrieval, or motel chains, especially one that's boring and upsets people, there's no problem with competition.Lynch, P. (1989). One Up On Wall Street: How to Use What You Already Know to Make Money in the Market. First Fireside Edition. New York: Simon & Schuster.