Beating The Market - Peter Lynch
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ScribdTranslationsBenefits of being single: Almost no company seems attractive to you, it is possible to maintain your
I will wait for better opportunities to make an application. And when this happens
The spirit will not be impeded in the finish, differently from the prerequisites.
I apologize for the vulgar expression related to tedious semester results in various aspects of communication.
Amateurs and professionals
Anyone starting their investment journey needs to keep in mind that not
is on the same level as the major fund managers or those
major names in the financial market. It is important to understand the
the difference between amateurs and professionals.
This is because, when you take your first steps, you are not obliged to
subject to some rules applied to those who live exclusively
of this. For example: it is not necessary to own more than one
handful of stocks to start your journey. And the amateur investor
you can still do market research in your spare time.
If no company seems attractive to you, it is possible to keep your
cash on hand and wait for better opportunities to make a
application. And when that happens, you will not be competing with
the competition, unlike the professionals, required to disclose
quarterly results in media with good
circulation.
To do well in the stock market, it is essential to explore the
natural advantage of being a beginner, with a lot of study and few
concerns with immediate results. And, surprisingly,
this amateur search is becoming extinct.
This is because such a process has been happening in an industrialized manner,
with an army of managers in brokerage firms being very well paid
for manage wallets immense of citizens commons.
Weekend anxiety
A key lesson to make money in the stock market is to hold on.
the tranquility. Those who are scared enough to sell them in a
the moment of fall will inevitably have losses. More and more, books
they are released with tips on how to choose companies to invest in.
But all of this is useless if there is no willpower to prioritize it.
reason, not instincts, in the pursuit of good financial results.
When it comes to investing your money in funds of
investments, it is essential to stay alert to the movements of the
economy, the conditions of various sectors of the market and the studies
Rules that every good agent in the financial world needs
monitor
One must also not neglect the current discussions,
capable of interfering with the progress of the most important indices.
Everything that is debated around him, from the chat in the coffee break
office to the conversation in the supermarket line about greats
topics cannot be ignored. Some of these issues change the
world economy overnight.
The weekend is the time when people reflect the most about
news, especially the distressing ones. And it is precisely they that
tend to scare us in the buying and selling of stocks after the
opening of the markets the next day.
Stay calm, tranquility, and common sense. Without rationality, there is no
success in the world of investments.
A walk through the back
In many books, YouTube channels, consulting firms, and classes
specialists, investment funds are pointed out as
a considerable alternative for those who are starting. Its function
The primordial should be to eliminate all kinds of confusion and doubt.
of those who are just starting.
If there were doubts about which fund to choose before, the author provides data.
impressive about their spread. In their home country, there are
3,565 of them, according to the most recent count, being 1,266.
equity funds, 1,457 fixed income securities, 566 short-term ones
taxable and 276 short-term municipal bonds.
To get an idea of this growth, in 1976 there were 452 funds of
investments, with 278 related to stocks. Both there and here,
this way of applying money has multiplied tremendously
over the past decades, democratizing access to the market.
For those who still resist entering the world of investments, without
doubts the funds are a good start.
The world turns
We have passed the halfway point of this microbook and it's time to do a
important alert that every good investor needs to pay attention to. The
the rise and fall of companies in markets of all sectors
the acting is cyclical. The good investor has their eyes focused on
this variation and face it with naturalness and rationality. As for the
terrified people lose a lot of money during these most critical moments.
In times of stagnant economy, professional managers think
in investing your money in the sectors with the highest volatility. In
great crises, the search to anticipate the competition by capturing well
the variations lead them to make crucial mistakes that cause great
losses.
The author's impression is that Wall Street, and consequently,
managers around the world are increasingly trying to anticipate the
cyclical variations. This ends up generating excessive speculation.
We have another advantage in favor of the amateur investor, who does not
need to deal with the crazy attempt to guess what will happen
in six months or in a year.
It is necessary to be aware of the fact that not every fall is irreversible and
there is no invincible company capable of sustaining its stock highs
forever, unaffected by actions in its market
performance.
Being aware of the possible variations does not mean making decisions.
rushed buying and selling.
The six-month review
There is no profitable investment portfolio without regular reviews. The
ideally, every six months on average, you should review all the
applications and take stock. Try to understand which of them
they are still worth it, which ones are promising and which ones can be
sold.
This is especially true for actions, but it can also be repeated.
in investment fund applications. You need to put in
reassess your priorities from time to time so you don't get lost with
applications that no longer meet their objectives.
It is important to emphasize that the six-month review is not limited to
observe rises and falls. It is necessary to follow the stories of each
one of the companies you invest in to see if the shares are still
they have attractive prices in relation to profits and what is
happening in recent times, for possible projections of
increases in the book or even possible losses.
The review of the portfolio every six months allows for the steps taken
may be planned by the investor, without making decisions
based on pure emotion, according to market variations.
Some golden rules
With decades of investment, Peter Lynch kept teachings.
that help every newcomer get the most out of their actions. And nothing
better than sharing the main ones. Some have already been
dissected by the author in previous books, but it doesn't hurt to repeat them
for those who want to beat the market and see their money multiplying.
To begin with, it is good to remember: being an amateur investor brings
benefits in relation to professionals. Make the most of these
advantages.
There is a company behind every share sold in the market, by
it is essential to discover what companies are doing to
validate your investment.
The success of a corporation does not always reflect in an increase in
short-term bags. Try to provide rational explanations to your
investments and do not trust your intuition. After all, shots in the dark almost
they always miss the target.
Don't forget that actions require dedication. They are like children. That's why,
never try to have applications on a larger scale than you are capable of
to cope.
If in your searches and research you have not found a company
that deserves investment, don't be scared. Leave the money in the bank
and continue studying until you find the ideal application.
Finally, if you have the stomach to work with stocks, but little
time for homework, turn to investment funds. There is
great diversification and it is possible that your money will start to be
multiplied like this, little by little.
Study, research, seek, start and revise. Your earnings
They thank.
Final notes
When one of the largest equity fund managers of all time
tempos shares with the reader his tips to improve the
profitability in investments, stopping to listen to him is mandatory. Peter
Lynch made it clear how essential it is to take advantage of the advantages of
being an amateur in the financial market. It may seem contradictory,
but it is about the benefit of putting oneself in one's own place, walking
step by step in buying and selling stocks, without the need
outrageous profits suddenly.
By following this expert's golden rules, you will see your money
working and yielding more and more.
Tip of 12 min
No microbook Everyone Lies, learn in detail how it is
it's impossible not to leave traces on the internet and how that affects
our perception of the world.
