Here are some pointers from this section: - Deepstash

Here are some pointers from this section:

• Understand the nature of the companies you own and the specific reasons for holding the stock. (“It is really going up!” doesn’t count.)

• By putting your stocks into categories you’ll have a better idea of what to expect from them.

• Big companies have small moves, small companies have big moves.

• Consider the size of a company if you expect it to profit from a specific product

• Look for small companies that are already profitable and have proven that their  concept can be replicated

• Be suspicious of companies with growth rates of 50 to 100 percent a year

• Avoid hot stocks in hot industries

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These are some lessons that peter lynch thought us in one up on wall street

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For the Defensive Investor

Once you have your capital, invest 50% of it into bonds or an index fund (depending on market conditions) while the other 50% to be invested on individual stocks.

However, when investing on individual stocks make sure of the ff:

  • avoid small cap stocks unless they're diversif...

If you take anything with you at all from this last section, I hope you ’ll remember the following:

• Sometime in the next month, year, or three years, the market will decline sharply.

• Market declines are great opportunities to buy stocks in companies you like. Corrections—Wall Street’s definition of going down a lot—push outstanding companies to bargain prices.

• Trying to predic...

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