I Learnt 56 Points "On up on wall Street Book"

 

Today, completed the book "On up on wall Street  written Peter Lynch." 

I have learned 56 points which I am explaining in following summery. 

0. Always Smile, Stock Market is not difficult. Good companies are not in the broker and professional analyst list, it is near to you whose great products you or your family or your relatives or your friends buy daily

1. To Buy only Good Fundamental Company

2. Big Company are big, it is difficult to change it

3. We are free to buy one company or 10 company

4. Trust is must for success in share market

5.  Share market gives better return than Debt Market Investment

6. If we Sleep in the Crash Time, we Can Become Rich Fastly in Stock Market

7. Why is important for Investing in the Stock market 

We are contributor in the world growth through company investment

8.  If we buy the share at wrong time and at wrong price, we will face only lose

9. See the Potential of Growth of Company

10. Share market is gambling but if you know how to play, you will only winner

11.  Never invest if consuming your hard earned money

12. Never Buy share within seconds, Give time to analyze it

13. Invest only that money which does not effect on daily life

14. For success in share market, you need patience, tolerance power and open mindness

15. Panic People sell good company shares at low price in the time of economy crash

16. Make the practice of ignore and keep the share upto that time, its story is great

17. Economist never forecast the future of economy of the nation

18. Every share has the capacity of 700 Beggar

19. Never invest in shares but in companies

20. To buy one good share is better to buy 10 bad shares 

21. Invest in whom you know

22. Small companies have big potential to grow fast

23. Remember everything will change

24. Big dividend means company has no plan to grow their business

25. 20-25% new fast growing companies are best

26. Fast growing company have high risk

27. I only find only good balance sheet companies

28. Companies under high debt are so bad

29. If you find a company who is not famous and it is doing boring company, it will be best for you

30. If board of directors and company's employees are buying own company share, then it is best for you

31. If you find the company who has less part in big institutions, then it has great potential to grow

32. If a company with no debt, income is increasing, and growing fast, it is best for buying share

33. If company's product is used by consumer daily basis, it is good potential of sale in future

34. If company buyback, you must its share

35. If company issue new shares, try to avoid it

36. If balance sheet is becoming weak, sell that company share

37. Low P/e is good 

 38. Know the story of company

39. Avoid technology shares

40. Ask the question from investor executives if not find in Annual report

41. Before buying, ask company, what are the 3 positive things in your company and 3 negative things in your company.

42. If you have 20,000 shares, you can travel company's head office

43. If debt is more than cash, it means it has less capacity of company

44. Find long term growth rate 

Long term growth rate = growth rate + dividend yield / P.E

more than 1 is best if 3 it is best 

growth 15 + dividend yield 3 / p.e. 6 = 3

But this share's truck

45. Bank debt is bad than bond

46. If company gives dividend, it is good because otherwise company wastes the money in big acquisition

47. Dividend providing company never fall high 

48. I will prefer the company who is angry young man with fast grow than old company providing dividend .

49. High dividend may be greed to shareholder for attract high capital 

50. After Quarterly report, check again the financial statement of companies

51. Check whether company buy new loan for decreasing its asset value

52. Buy lots of company shares which gives you the flexibility to inter-change

53. Invest 1400 companies shares. 50% of you money invest in top 100 shares and next 15% in next top 100 companies and next 35% divides next 1200 for finding new opportunities and possibilities 

54.  Invest in large number of sectors

55. If you want to buy good companies share at less price, buy it end of month of the year or in economy crisis time

56. Broker more happy when he got double earning when you sell the shares