You will have to learn skills or you will have to become an expert If you have not even heard about the stock market till date, you can still learn a lot from just this article
Today I am going to share with you a detailed summary of One on Wall Street whose author is Peter Lynch First of all, let us know about the author in detail. Peter Lynch is a legendary investor who has earned a lot of money and fame from the stock market.
In 1966, he joined Fidelity as an intern in investment. He was a member of the fund and in 1977 I became the portfolio manager of the fund and managed it for 13 years and generated an average of 29.2% annual return which was one of the highest returns in the history of mutual fund management
This book is divided into three parts.
Part one: This is an introduction to investing and to investors’ minds. Basically, in part one you will learn why you should start investing and what your mindset should be to succeed in the stock market.
Part two: This is a step-by-step process here we will learn practically how to analyze different stocks and Finally how to choose stocks Part.
Part Three: The is long term Investing and Portfolio In this part we will also learn what to do with our investments in the long term.
Chapter One: ( Preparing You Invest)
Stopped During 1950 in America all People thought that investing money in the stock market means a waste of money and the same mindset was in the family of Brass Lens.
Everyone avoided even talking about the big stock market but whenever started golf A person on the course is the one who carries the bags of golf players and as we know Golf is the support of the rich
So when Peter Lens used to lift the bags of big business men during golf games he noticed that these people mostly talked about stocks. Some people sometimes even celebrate their selected stocks have given multi-bagger returns
Here gradually Peter Lens felt that my family told me to stay away from the stock market industry. and these people are earning so much money daily that my entire family members do not earn milk in a year. By the way Peter studied at Boston College where he took several subjects like history psychology political science He scored well in all subjects like Physics Logic
but he says in his book that History and Philosophy were less in his Stock Market and not Statistics or Mathematics because he says that the Mathematics you need in Stock Market you learn it in Class 4 itself
In 1963 he made his first stock choice to invest and in just 2 years that stock gave him a 5 times return which paid his college fees in his second year, he got an internship at Foodie Light Mutual Fund Company which was the best-performing investment company of his time.
Chapter Two of Wall Street Oxygens :
In this chapter, author Peter says that individual and ordinary investors have more advantages than professional and institutional investors because professionals or fund managers need many types of approvals before investing in any stock, but we and investors like you have this advantage that we can buy shares of our selected company whenever we want, we do not need anyone’s approval.
Chapter Three Is this gambling or What
In this chapter, Brass has explained the difference between investing in debt and investing in stocks. This means that you are giving a loan to someone and you get interested in it When you do this in a bank Or when you invest in bonds So simply you are giving them a loan and they earn more money from your money
And in this return you get interest and along with that you get your principal value The author believes that by investing in debt You do not get profit because since 1927 debt has given less than 5% return so you will not make money here
But when you invest in stocks then the possibility of returns is very high On in USA average since 1927 has given a common 9.8% return In stocks If we talk about risk, then there is more risk in stocks because any company can decline anytime and many of the companies which were at the top 20 years ago have been closed today. So it is completely up to you whether you want to take more risk and earn more money or take less risk and earn less money.
Chapter 4 Passing the mirror test
Questions to ask before investing in stocks. According to Peter Lunch,
- Number one: Do I have a house; do I need a house?
- Number two: I need money; do I need the money?
- Number three: Do I have the skills to Be comfortable with success in stocks?
Do I have the Personal qualities? It will help you succeed?
The first question is blessings for the house. this author believes that before investing in stocks, you should buy your own house he believes that when you buy a house, in most cases you hold it for a long time, which gives you mental happiness that you have a bull over your head.
He says that most people make money in the real estate market. That is why and is why they invest in stocks because before buying a house, you do research for weeks or minutes and personally go to the property and see the profit or loss, we also calculate their profit or loss, but when you invest in stocks you don’t do all these things the author says in this book that spend more time shopping for a good microwave oven and shopping for a good investment that is, we are talking about those people here who make losses in the stock market, they spend less time in their investment than the research they do to buy a microwave oven.
In the second question coming to question do I need the money author says only invest what You jump You can afford to lose, that is, you should invest only that much money that if you lose even then it should not create any problems in your daily life.
Third question Do I have the personal qualities to succeed? Do I have the skills to become rich from the stock market? Skills are not financial skills or any talent or any specific degree is being talked about and then we mention patience that is, patience, self-reliance, self-reliance, common sense, and skills like that. you need.
Warren Buffett says that if your IQ is 160 which means that you are very intelligent, then he says that In this, you should give 30-40 points to someone else because you do not need so much intelligence in investing but you should have the right nature so that you can give details of others’ opinion.
Chapter 5: IS THIS A GOOD MARKER PLEASE DON’T ASK
In the chapter, They say that the simplest thing you have to understand is that you are not investing in the stock market but you are investing in the company Many people come to the author to ask whether it is the right time to invest in the stock market or whether the market is running right now, then Peter’s very simple answer is that the market does not exist at all and whatever they predict They are not earning money continuously. That is why reception is blooming market inflation interest rate is high Instead of paying 100% attention to the policies of banks You should focus on the company and focus on the company.