Post by 4aapl on Mar 9, 2022 19:15:23 GMT -8
An oldie (came out in 1994) from Peter Lynch, but still interesting.
It broke down the timeframe he ran the fund into multiple periods. In all he traded, a lot. Later on, the size of the fund made him have to invest in a whole lot of things, since his preference was small companies, ideally that weren't widely followed.
If one was looking for lots of info on how to trade in small companies, this would be a great place to look.
Even without that, the basics of buy what you know, and buy or buy more on the downside, if it's a strong company.
One part I liked dealt with the auto industry, showing how once they got behind the supply/demand curve, it often took 3 years or more to fully catch up. I think in the current market we'll see used car prices change quicker as new cars partially fill demand, but it is likely it will take a while to fully saturate and get caught up with demand.
For those looking for a Cliffs Notes version, the best might be to just look at his principles throughout the book. There were 20-30, and often they fit right in with Apple over the years. They are probably google-able, or just flip through a copy at the library.
It wasn't the best book on all fronts for a long term investor with a small basket of stocks, but it was an interesting look through somewhat a different perspective, and also a timeframe where I wasn't an investor. And yet it pointed out the discipline of not selling a multi-bagger too early, potentially only getting 5x-10x return on a great company, that went on to hit 50x or more.
It broke down the timeframe he ran the fund into multiple periods. In all he traded, a lot. Later on, the size of the fund made him have to invest in a whole lot of things, since his preference was small companies, ideally that weren't widely followed.
If one was looking for lots of info on how to trade in small companies, this would be a great place to look.
Even without that, the basics of buy what you know, and buy or buy more on the downside, if it's a strong company.
One part I liked dealt with the auto industry, showing how once they got behind the supply/demand curve, it often took 3 years or more to fully catch up. I think in the current market we'll see used car prices change quicker as new cars partially fill demand, but it is likely it will take a while to fully saturate and get caught up with demand.
For those looking for a Cliffs Notes version, the best might be to just look at his principles throughout the book. There were 20-30, and often they fit right in with Apple over the years. They are probably google-able, or just flip through a copy at the library.
It wasn't the best book on all fronts for a long term investor with a small basket of stocks, but it was an interesting look through somewhat a different perspective, and also a timeframe where I wasn't an investor. And yet it pointed out the discipline of not selling a multi-bagger too early, potentially only getting 5x-10x return on a great company, that went on to hit 50x or more.