Who do you believe in? I put my faith in..... Peter Lynch. Lets talk about him.

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Shouldn’t you go first?

I have and have read all 3 of peter lynchs books. Good introductory stuff. I’d be curious to see how that sort of generalist approach would hold up today vs indexes.

can you give me brief summary on how they all differ? the books that is.

Learn to earn: Really basic shit, intro for nubs with little background in investing

One up on wall street: some theory on investing

Beating the street: applying some of that theory

That’s the usual order I’ve seen them described that people read them in.

whats your fave?

Ironically, the more people who follow his method, the less likely the method becomes in beating the normal stock market…

I dunno if I’d say I have a fave. They all have similar material and focus on applying his strategy, which he made work successfully. I prefer this sort of style to other authors I’ve read like Joel greenblatt, given that I prefer the deep dive private equity, long-term type of investing/getting to know a business as well as anyone not in the c suite, rather than running through screens like Joel does, even though I enjoyed Joel’s writing a lot. I’m just not sure if I’d really understand how to source ideas consistently using Lynch’s strategy. But he had huge diversification and claimed to see tons of good ideas. I feel like to really appreciate this you may need to be a portfolio manager, which I’m not. I don’t know if he really could get as feel into companies as I would prefer to. It seems unlikely given that his fund had thousands of positions at times. It also seems crazily diversified, but he rocked it. Maybe it relies on instincts to a degree, which he may have. Scaling those to the level he did is impressive.

this will never be the case for etfs. net of fees they are designed to underperform.

in any case i like his thinking. he married growth and value together. i liked how he began categorizing stocks based on what he expected from them. did 1 summary lines for reports. the idea of a ten bagger and selling right after saturation. but the man had crazy turnover and took too many positions imo. im more of a buy and hold forever and sell if their fundamentals tank. so more of stalwart.

just read a summary on beating the street. and he goes into details on specifics stocks and described indsutries. im thinking whether its worth it to read the real thing. i’ve actually been meaning to read a good summary on different indsutries and their histories but based off the stock market investor perspective. beating the street seemed to be it.

This guy wrote overviews of a few different industries, you may enjoy reading these.

https://www.wallstreetoasis.com/forums/basic-overview-of-the-consumer-sector

I understand what you mean but I’m not sure it applies to Lynch’s philosophy so much. We’ve all heard his famous quotes, “buy what you know.” And, “if you can’t explain the business model with a single piece of paper and a crayon, you shouldn’t invest in it.”

Given there are millions of people with different skill sets and coloring abilities, this philosophy could (and should) lead two people to reach very different investment decisions.

Not like what’s his face…what it Benny Graham? Basically said buy everything with a P/B <1. That would lead to every stock having such a high multiple no one could own anything.

no one is really talking about lyynch anyways. what you hear mostly is S&P index. and S&P is really killing because of growth. lynch is considered the king of growth investing. because he invested in small things before they were popular, and watch the cos grow. one of his fave indsutries was retail. initially the retail co would be profitable in 1 shop, take on debt, expand and grw their revenues and profits. sometimes it gets bought out, other times growth stall, and he sell out of it.

nowadays, tech is leading the growth as they change the business model for a lotta companies or at least shift it. they are scaling up at huge numbers and maintaining or even increasing margins. i guess the real question is trying to figure out when will they stop growing. are the subscribers near peak or will continue to expand? are people spending more/less time? are these domestic (high margin) or shithole countries (low margin). its all fascinating stuff!