📖One Up on Wall Street by Peter Lynch et al.

Topic: Investing, Stock Market | Medium: Audible | Rating: 4/5

"People spend more time researching a refrigerator to buy than what stock they invest in." Aint that the truth (self included).

I think I will stick to index funds for now, but it was good to know why. E.g., investing in the top 100 companies because they will likely be profitable for the next 100 years.

For those who trade the book recommends valueline.com for some good statistics.

Stock picker:

Investing is an art not a science (not quantitative)
Oxymorons - professional investing
Too many barriers between the professional/institution
6/10 good stocks is a good portfolio

Passing the mirror test:

Do I own a house - people take a lot of time deciding on a house vs stock
Do I need the money - invest what you can afford to lose
Do I have the personal qualities that will bring me success in stocks - patience, self-reliance, willingness to research, ignore general panic, ignoring gut feelings unless

Is this a good market?

Is the market is irrelevant - invest in the profitable companies
Invest in companies, not in the stock market
Avoid short-term changes

Finding the 10+ bagger:

Start close to home. Where you shop. Where you work
Slow growers; stall worths; fast growers (10-100 bagers), high risk, cyclical, turn arounds.
What you know from your job before Wall Street knows

Getting the story:

Boring business with boring names are good
Earnings and Assets - PE ratio is useful for determining if a stock is fairly priced and shows the payback period for your investment. Avoid stocks with a very high PE ratio.
How is a company going to increase earnings?
Share buy backs is a good sign.

Analysing the Annual Report:

Cash + marketable securities = liquidity
Long term debt
Net cash position
Cash vs Debt
Get quantiative informaiton from valueline https://www.valueline.com/
PE = growth rate
Debt to equity
Hidden assets
Cash flow