Peter Lynch Vedio notes:
- pateince
- little research
- no panic
- emotional strength
1) Long time ---- not a short time....
2) Give time to grow
3) stock picking -- area/field , consumer, product, service
4) dont take your area granted.
5) good observant neigbor
6) key organ is the stomach.
7) research -- things u know...story does not change ... only spend few hours--- low cost /donut....mcdonald. they added breakfast, low cost. overseas.
8) No one can predict the market. 90 years-- market fluctuates...10 % 25 %.
9) if company does good...stock does good.. if company lousy..stock lousy..
10) symtpms---
11) stoks in category...what question will ask in category.. different stocks---different expectation, different behavior.
12 5 catrgories---- fast grower---slow grower,,circlonic,, asset ,,turnaroud,,
categories are guildine and not hard rules
13 ) smalller companies tend to move faster compare to large
14 Growth companies--- baseball 9 inning...growth compani --buy in 2 or 3 innn
15 ) look for signs..---- steady grow earning.. rising divinde.. room for keep growing..
16 ) dont buy on hope... something should happen
17) pick strong companies-- strong cashflow and low debt...so that they can survive..
18 ) trun around happening--gets some real evidence
19 ) hidden asset of companies ---- real estate --true market value--- brand name--intel,att..numerios patenet...
20) stocks follows earning direction...
21) strong reason to grow...
22) p/e == thumb rule...if earning/growth rate is less then p/e ...good if pe/e is more than grow..bad..expensive..
23) if dividend is rising.. its good signe..
24) Explore balance sheet. company should have atleast some cash ...
-be carefull with high yeild.
-asset-liabilites = equity(networth)
-company should atleast have cash to pay short term debt. if not..keep bororw ..mo
-if subtract cash - short term debt-long term cash = one quarter of networth -decent balancesheet.
- if subtract cash - (short term debt-long term cash) = > networth = weak balancesheet balancesheet.
- how much debt is good : addup equity with long term debt = total capitalization.
now total long term debt/total capitalization = if it is total deb is half and more than total capitalization then it is too much debt. if it is less than 25% then fairly low.
--banking/insurance/finanical institues --- normally 25-50% and higher normal.
--looking into the footnotes for debt.
-- balancesheet/income statemetn--- basic formula--- quarter or year.
-- ways to improve earning... increase sales..reduce cost....
-- talk about stories.
---
-- assestment section
---story creation ---
---brass tax...
- pateince
- little research
- no panic
- emotional strength
1) Long time ---- not a short time....
2) Give time to grow
3) stock picking -- area/field , consumer, product, service
4) dont take your area granted.
5) good observant neigbor
6) key organ is the stomach.
7) research -- things u know...story does not change ... only spend few hours--- low cost /donut....mcdonald. they added breakfast, low cost. overseas.
8) No one can predict the market. 90 years-- market fluctuates...10 % 25 %.
9) if company does good...stock does good.. if company lousy..stock lousy..
10) symtpms---
11) stoks in category...what question will ask in category.. different stocks---different expectation, different behavior.
12 5 catrgories---- fast grower---slow grower,,circlonic,, asset ,,turnaroud,,
categories are guildine and not hard rules
13 ) smalller companies tend to move faster compare to large
14 Growth companies--- baseball 9 inning...growth compani --buy in 2 or 3 innn
15 ) look for signs..---- steady grow earning.. rising divinde.. room for keep growing..
16 ) dont buy on hope... something should happen
17) pick strong companies-- strong cashflow and low debt...so that they can survive..
18 ) trun around happening--gets some real evidence
19 ) hidden asset of companies ---- real estate --true market value--- brand name--intel,att..numerios patenet...
20) stocks follows earning direction...
21) strong reason to grow...
22) p/e == thumb rule...if earning/growth rate is less then p/e ...good if pe/e is more than grow..bad..expensive..
23) if dividend is rising.. its good signe..
24) Explore balance sheet. company should have atleast some cash ...
-be carefull with high yeild.
-asset-liabilites = equity(networth)
-company should atleast have cash to pay short term debt. if not..keep bororw ..mo
-if subtract cash - short term debt-long term cash = one quarter of networth -decent balancesheet.
- if subtract cash - (short term debt-long term cash) = > networth = weak balancesheet balancesheet.
- how much debt is good : addup equity with long term debt = total capitalization.
now total long term debt/total capitalization = if it is total deb is half and more than total capitalization then it is too much debt. if it is less than 25% then fairly low.
--banking/insurance/finanical institues --- normally 25-50% and higher normal.
--looking into the footnotes for debt.
-- balancesheet/income statemetn--- basic formula--- quarter or year.
-- ways to improve earning... increase sales..reduce cost....
-- talk about stories.
---
-- assestment section
---story creation ---
---brass tax...
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