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

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If you can follow only one bit of data, follow the earnings -- assuming the company in question has earnings.

People can put off replacing cars for a year or two longer than expected, but sooner or later they are back in the dealerships. But for slow growers, we also have to be wary it is not in a sunset industry if it is, the earnings may be on a perpetual decline, and the dividends will eventually be cut.Nevertheless, this generation of investors has kept the faith and stayed the course during all the corrections mentioned above.

Magellan Fund, Peter Lynch‘s fund under Fidelity Investments, achieved average annual profitability of 29. While the task of data collection can seem daunting to a novice investor, it’s simpler than you might think. I enjoyed this book, althought I was expecting more advanced concepts (since I am in the investing business). Lynch’s preference for investing in fast-growing companies that don’t pay dividends reflects the change in how companies approach dividends that occurred over the 20th century. This is a lovely book written by a very polite and engaging character, full of beautiful anecdotes and sound advice.So if a company has a PE ratio of 30, but its growth rate is 60%, its PEG ratio is less than one, which may show that the company is undervalued relative to its growth rate. He takes the view that middle-class (amateur) investors can beat professionals by using common sense and self-control. Among the likely causes: Japan's sick economy, our trade deficit with China and the world, the bond market collapse of 1994, the emerging market collapse of 1997, global warming, ozone depletion, deflation, the Gulf war, consumer debt, and the latest, Y2K.