Falling commodity prices, usually prices of oil, steel, etc., will turn down several months before the troubles show up in the earnings. All else being equal, a 20-percent grower selling at a p/e of 20 is a much better buy than a 10-percent grower selling at a p/e of 10. No new products being developed, spending on research and development is curtailed, i.e. the company is resting on its laurels. At some point in the next three months or the next year or the next three years, the market will have a sharp fall, that is almost certain. These falls are great opportunities to buy good companies at auction prices. The AAII Lynch approach specifies that the company’s current price-earnings ratio be lower than its own five-year average price-earnings ratio. Implicit in this filter is that a company must have five years of positive earnings and five years of price data.

Nobody believes in long-term investing more passionately than I do, but as with the Golden Rule, it's easier to preach than to practice. Nevertheless, this generation of investors has kept the faith and stayed the course during all the corrections mentioned above. Judging by redemption calls from my old fund, Fidelity Magellan, the customers have been brilliantly complacent. Only a small percentage cashed out in the Saddam Hussein bear market of 1990. 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) But hopefully, by doing this, we will be able to make better decisions. Personally, for me, I put in minimally four hours a day to just read up on companies and find potential investments.Dollar discount shops might also be recession-proof too because, in a recession, people tend to be more budget-conscious and shop more at discount stores. 4. Cyclical Peter Lynch ได้เล่าว่า คุณสมบัติควรรวมถึงความอดทน และ ทนต่อความเจ็บปวด พึ่งตนเอง ใจที่เปิดกว้างไม่ยึดติด ยอมรับความผิดพลาด และไม่สนใจความแตกตื่นของคนอื่นๆ ต้องสามารถตัดสินใจโดยปราศจากข้อมูลที่สมบูรณ์ เพราะไม่มีอะไรแน่นอน ในวอลสตรีท ด้วยความคิดแบบวิทยาศาสตร์ที่จะต้องรู้ข้อมูลทั้งหมด อาจพ่ายแพ้ ส่วนที่ 2

Different categories of companies have various risks and rewards. You can make much money by building a portfolio with stalwarts with a yield of 20 or 30% per year. Once you’ve chosen the industry, Lynch says, focus on finding companies that Wall Street hasn’t yet discovered. Look for zero or no analysts coverage and no institutional money. Selling at p/e 30, while the most optimistic projections of earnings growth are 15-20 percent for the next two years. Each book has a different impact on each person, so it’s challenging to make recommendations. But if you are beginning your path in finance, then I think this book is an excellent first step.

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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. Meaning, the valuation of the company may still seem ok even though its PE ratio is high – relative to its growth rate. 2. Slow growers

Creio que a essência do investimento em ações pode ser captado a partir desse livro e diversos insights podem ser aplicados em sua própria estratégia de investimento, por mais que haja uma significativa defasagem histórica (aproximadamente 30 anos). The average person is exposed to interesting local companies and products years before the professionals. The rapid expansion phase: SAFEST AND WHERE THE MOST MONEY IS MADE, because the company is growing simply by DUPLICATING ITS SUCCESSFUL FORMULA.Most are huge companies like Kellogg, Hershey's, Coca-Cocla, P&G which probably at best give 50% in a year or two, then probably you would want to begin to think about selling

Some of the best gains of the decade (as has been the case in prior decades) came from old-fashioned retailing. The Gap, Best Buy, Staples, Dollar General -- these were all megabaggers and well-managed companies that millions of shoppers experienced firsthand. That two small banks appear on this list shows once again that big winners can come from any industry -- even a stodgy slow-growth industry like banking. My advice for the next decade: Keep on the lookout for tomorrow's big baggers. You're likely to find one.Turnarounds are investment opportunity for companies that we think are currently in a bad position and is able to turn itself around. New products introduced in the last two years have had mixed results, others still in testing stage are a year away from the marketplace. Let’s start with the first one – slow growers . These companies are usually large, part of a mature industry, and therefore grow slower. 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.