Peter Lynch’s classic One up on Wall Street is a great book for any beginning investor to read. Lynch is arguably one of the top ten investors of all time and his success was largely based on his ability NOT to follow the crowd and looking for opportunities where others missed them.

One of the points that Peter mentions in the book is that often times the biggest winners pop up around us (in the shopping mall, grocery store, etc.) and the smaller investor stumbles upon them before Wall Street ever takes notice. If the smaller investor buys into the winning stock before the Wall Street investors do - they are going to benefit greatly from being in early. As he mentions, Wall Street generally has a herd mentality so once a stock is discovered by one Wall Street firm as a good buy, it is likely that many more big firms will be buying it as well. It is this process when all the “Big Money” is buying shares that causes the stock’s price to go up dramatically.

At the heart of Lynch's case is that each individual has enough inherent knowledge and experience to be a successful investor. He uses numerous analogies to show investors:
1. The power of common knowledge (take advantage of what you already know)
2. You don't need to be a Wall Street analyst to uncover great investment opportunities
3. You are not disadvantaged vs. large, institutional investors You don't have to accurately predict the stock market to make money in stocks
4. To keep an open mind to new ideas

His approach is rather simple. Buy stock in something that you know. As a consumer and a personal investor we have the ability to know products before anyone on the street knows about them. For example he got in on the stock Yum Brands because he bought a Taco Bell burrito years ago when it first came out. He believed that their set up and approach would work and so he put some money into the company.

His suggestions like listening to things Oprah likes are great simple tips that a typical investor may not even realize we have more information on than wall street on a daily basis. His book is a read for all investor types from beginner to advanced. Enjoy!

Download:

21 May 2009 15:19 | ICQ: -- |

20 June 2009 22:46 | ICQ: -- |

23 July 2009 22:30 | ICQ: -- |

10 September 2009 09:05 | ICQ: -- |