The book is divided into three equally insightful and enjoyable parts:
The idea is here not to listen to your gut but rather to shut out the natural human tendency to panic and discipline yourself. The trick here he says is to stick to your stocks as long as the fundamentals of the story haven’t changed. If you don’t know the story you wouldn’t know what to do. Similarly, what do you do if the stock is up 30%? Do you sell or hold? You’re liable to sell your ten-bagger for a small return. He posits that if you don’t know why you bought the stock of a company in the first place, you’ll panic when the stock is down 30%? What do you do when that happens? Do you flip a coin? Do you pray? Go for a walk maybe? The common thread that connects all the knowledge in this book can be best summarised with a aphorism: Know what you own. Peter Lynch uses his experience and wit to educate readers on how to find ten-baggers and when to say goodbye to your winners. One up on Wall Street is mostly about opportunities and challenges an investor will come across in his lifetime. If I were to try to summarise his investment philosophy in one sentence, I would say it is value investing modified to target high-opportunity stocks or ten-baggers as he likes to call it. A ten-bagger is a stock in which you’ve made ten times your money. It includes books such as Beating the Street, Learn to Earn, and One Up On Wall Street. He also authored and co-authored many books on investing and business alike. During his time, the Magellan Fund averaged a 29.2% annual return, the best 20-year return of any mutual fund ever (as of 2003). He ran the Fidelity Magellan Fund from 1977 until 1990. Peter Lynch was one of America’s number-one fund managers. He gives plenty of anecdotally funny examples of the follies committed by the naïve investor. Peter Lynch, One Up On Wall Streetīut perhaps the most important are the author’s unique insights into how the typical investor thinks, invests and reacts. If you can’t convince yourself when I’m down 25 per cent, I’m a buyer and banish forever the fatal thought: When I’m down 25 per cent, I’m a seller, then you’ll never make a decent profit in stocks. It contains golden nuggets of theoretical gems on how to pick winners, when to sell what you own and especially what to avoid. The book One Up On Wall Street distills author Peter Lynch’s knowledge and expertise into a coherent investment strategy that can be used by the average investor.
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