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Summary of One Up On Wall Street 

4.7 . 9017 reviews

Short summary

Peter Lynch is a legendary value investor with one of the best investing track records— he has managed the Magellan Fund at Fidelity Investment between 1977 and 1990. In that period, he returned an average of 29.2% per year. His market expertise is what makes “One Up On Wall Street” a monumental need for anyone interested in investing in the market. Peter Lynch argues that even the simplest people without any prior teaching can navigate the market and find hidden gems that even the big players in the game have previously ignored. He insists that the same skills he used to manage and win big in the market are the same he is teaching to readers worldwide. In this summary, the key tips are the warnings relating to stocks with a high extravagant price-to-earnings ratio and caution for the intending investors with little knowledge about the stock market. Contrary to the popular knowledge that the stock market is a difficult terrain to navigate, Lynch argues that the market is a straightforward path and his method is purchasing stocks of the undervalued firms awaiting when they’ll turn up a profit.

Table of content

  • Summary of One Up On Wall Street
  • About the author
  • What is One Up On Wall Street about?
  • Who should read One Up On Wall Street
  • Topics in One Up On Wall Street
first key point

Investing in Fast Growers involves knowing when to run for the hills

Listen the first key point
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A fast grower is a small company that experiences an aggressive growth spike during its startup stage, sometimes at a rate as high as 25%. It sounds like the best option if you want to shore up your portfolio and make it stronger.
If you want to start your portfolio on a high note, invest in fast-growing companies.
But with the rapid rise in profits, these fast growers come with is the need for caution on the side of the investors. You must first investigate if the increase rate has been steady and if their frontline product is a pivotal part of the business and not just a poster to distract from the other poorly performing stocks.

Then you must ascertain that the success it experiences isn’t a one-time thing and if the company has enough room to expand and grow. When investing in the very lucrative Fast Grower, verify if the company’s price to earnings ratio [PE] is close or equal to its growth ratio. This analysis is known as the PEG method.
When investing in these fast growers, make sure the growth isn’t fabricated.
Investors are advised to invest in fast growers but not to put all their cash there to avoid an unfortunate outcome. The thing with fast growers is that even though they start off with a high rate of growth, it can suddenly, without notice dip, and all your investments would be worthless.
The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed. ~ Peter Lynch
second key point

Slow growing companies may actually be a safer bet for you

The allure of fast growers might not attract all investors, owing to the known risks and the high paced style of trading it forces investors to adopt— buy fast, sell fast. For these cautious investors, the safe option will be a Slow Grower.
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third key point

Not too fast, not too slow: Stalwarts offer investors calmness for a change

fourth key point

The most profitable shares often come with a lot of ups and downs

fifth key point

There are investments that start out terrible make a drastic and positive turnaround

sixth key point

A wise investor is one that looks out for the dark horse in the market and sticks to it

seventh key point

Conclusion

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What is One Up On Wall Street about?

Who should read One Up On Wall Street

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Do you find yourself staring at your computer for long minutes, unaware of time slipping by? Do you enter a room and suddenly cannot remember why you stepped in the first place? Is it a herculean task for you to sit through ten pages of a book without reaching for your phone? If yes, your focus needs some work and fast.

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