One Up On Wall Street: How To Use What You Already Know To Make Money In The Market

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Shortform note: A different way to consider whether a company has special assets is to identify what experts call its unique selling proposition— what makes the business unique among competitors. Ask, Is this company doing something no other company can easily do? What about this company’s business model, product, or operations can’t easily be duplicated and therefore makes the company valuable? If you have positive answers to the above questions, you can consider the company to have a special asset.) Has the Company Recently Diversified? The rapid expansion phase: SAFEST AND WHERE THE MOST MONEY IS MADE, because the company is growing simply by DUPLICATING ITS SUCCESSFUL FORMULA. The Asset Plays) คือ หุ้นที่มีกระแสเงินสดมาก หรือ หุ้นที่มีสินทรัพย์ที่ซ่อนอยู่มาก เช่น อสังหา, สิทธิบัตร

In liabilities, see the amount of long-term debt and see if it is increasing or decreasing (if cash has been growing and this type of debt is decreasing, then the balance is getting stronger and stronger); then view the total and calculate the net cash position. Companies in no-growth industries: Seek out companies in industries that seem not to be growing at all because this indicates there’s little competition in such industries, and strong companies can flourish. The AAII Lynch approach specifies that the company’s current price-earnings ratio be lower than its own five-year average price-earnings ratio. Implicit in this filter is that a company must have five years of positive earnings and five years of price data. At some point in the next three months or the next year or the next three years, the market will have a sharp fall, that is almost certain. These falls are great opportunities to buy good companies at auction prices. Here are 3 lessons from investing legend Peter Lynch to help you do that job as if you were being paid to do it:

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When on the lookout for good investments in your daily life and at work, pay particular attention to companies with the following positive attributes, writes Lynch: You can't predict future earnings, but you can find out how a company plans to increase its earnings. There are five basic ways to increase earnings:

Revitalize, close, or dispose of an operation that is losing money: can the company close an operation that is losing money and thus improve its profits?Doesn't have to belong to fast-growing industry. In fact, Lynch rather it doesn't. All it needs is the room to expand within a slow-growing industry. E.g. Beer is a slow-growing industry, but Anheuser-Busch has been a fast grower by taking over market share, and enticing drinkers of rival brands to switch to theirs. The hotel business grows at only 2 percernt a year, but Marriott was able to grow 20 percent by capturing a larger segment of that market over the last decade. Different categories of companies have various risks and rewards. You can make much money by building a portfolio with stalwarts with a yield of 20 or 30% per year. Creio que a essência do investimento em ações pode ser captado a partir desse livro e diversos insights podem ser aplicados em sua própria estratégia de investimento, por mais que haja uma significativa defasagem histórica (aproximadamente 30 anos).

In addition to that, there is also the ability to generate profit in the future. How to Analyze a Balance in 10 Minutes If a company—especially a retailer or a manufacturer—has a large inventory, it usually means it isn’t selling as much as it would like to, contends Lynch. Further, this inventory will depreciate in value and can’t be sold for as much in the future—think about clothing, which rapidly depreciates because it goes out of style. Consider avoiding such companies. In current assets, look at the position of cash and marketable securities; add them together to see how much cash you have available. See if it is increasing or decreasing from previous years. Most are huge companies like Kellogg, Hershey's, Coca-Cocla, P&G which probably at best give 50% in a year or two, then probably you would want to begin to think about selling Let’s start with the first one – slow growers . These companies are usually large, part of a mature industry, and therefore grow slower.

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The former star manager of Fidelity's multibillion-dollar Magellan Fund, Lynch reveals how he achieved his spectacular record. Writing with John Rothchild, Lynch offers easy-to-follow directions for sorting out the long shots from the no shots by reviewing a company's financial statements and by identifying which numbers really count. He explains how to stalk tenbaggers and lays out the guidelines for investing in cyclical, turnaround, and fast-growing companies. No Name ก็ยังไม่สามารถซื้อได้ หากซื้อแล้วเกิดปัญหา มันก็จะกลายเป็นว่าหาเรื่องใส่ตัว ระหว่างโอกาสในการทำกำไรงามจากหุ้นเล็กๆ ทำกำไรจากบริษัทที่ยังไม่ค่อยมีใครรู้จัก กับการลงทุนในบริษัทโด่งดังและมั่นคง ทุกคนรู้จัก นักลงทุนมืออาชีพมักจะเลือกลงทุนอย่างหลัง เพราะความสำเร็จในหน้าที่การงานก็เป็นอย่างหนึ่ง แต่ความล้มเหลว(ขาดทุน) นั้นจะทำให้มืออาชีพเสียชื่อ และตกงานหมดอนาคตในเส้นทางได้ ดังนั้น จึงทำให้เหล่าผู้บริหารกองทุน เลือกหุ้นกลุ่มที่เป็น Safe zone จึงไม่แปลกใจที่ผู้จัดการกองทุนหลายๆแห่ง มักทำผลงานไม่ได้ดีเด่นอะไร

Philip Morris ผู้ผลิตบุหรี่ Marlboro ได้ลดต้นทุนโดยใช้เครื่องมวนบุหรี่ที่มีประสิทธิภาพสูง ในระหว่างนั้นอุตสาหกรรมได้ขึ้นราคาบุหรี่ทุกปี หากต้นทุนเพิ่ม 4% เขาสามารถเพิ่มราคาขาย 6% ซึ่งทำให้ Margin เพิ่ม 2% ดังนั้น การเพิ่ม Margin 2% หมายถึงกำไรที่เพิ่มขึ้น 20% Finally, it is also advisable to avoid companies concentrating a large part of their sales on a single customer. Cost reduction: can the company reduce the cost of materials, the cost of labor, or the fixed costs incurred each year?If you find a business that can get away with raising prices year after year without losing customers (an addictive product such as cigarettes fills the bill), you've got a terrific investment. These companies with zero growth are about to go bankrupt but are good because their movements have nothing to do with market cycles.