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TOP 5 LESSONS FROM ONE UP ON WALL STREET.
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1. WHY THE INDIVIDUAL CAN BEAT THE PROS
A. They can't pour huge amount of Money into the Small sized Quality Companies
B. "Mediocrity is the safest play"
They follow the crowd. Because if something bad happens with their Investment,authority will charge on them first.
A. They can't pour huge amount of Money into the Small sized Quality Companies
B. "Mediocrity is the safest play"
They follow the crowd. Because if something bad happens with their Investment,authority will charge on them first.
D. Capital is dependent on the clients.
People's money->Fund house-> Market.
People invest aggressively in BULL market and Withdraw aggressively in BEAR.
[BAD Descision]
As a result,the fund managers face shortage of money when actually money should be Invested
Never do it
People's money->Fund house-> Market.
People invest aggressively in BULL market and Withdraw aggressively in BEAR.
[BAD Descision]
As a result,the fund managers face shortage of money when actually money should be Invested
Never do it
2. IF YOU LIKE THE STORE, CHANCES ARE YOU'LL LIKE THE STOCK
If you like the products/service of the listed company,You may also like stock.
Most important :
Avoid the stock if revenue contribution of this product is too low. 2-3%
It should be <15%
If you like the products/service of the listed company,You may also like stock.
Most important :
Avoid the stock if revenue contribution of this product is too low. 2-3%
It should be <15%
3. THE SIX CATEGORIES OF THE STOCK INVESTMENTS
A. SLOW GROWER-
These Companies are matured,large companies. Small room to grow. As a result,Stock price can't grow so fast.
B. STALWARTS - These Companies grow at 10-12%. They're neither Cheetah nor Snail.
A. SLOW GROWER-
These Companies are matured,large companies. Small room to grow. As a result,Stock price can't grow so fast.
B. STALWARTS - These Companies grow at 10-12%. They're neither Cheetah nor Snail.
C. FAST GROWER - These companies grow at < 20%.
If the companies sustain such growth rate,that will be a great Investment.
But always verify the growth rate for the next years.
D. CYCLICALS - These companies face boom and bust Cycles. Their products are not regularly used.
If the companies sustain such growth rate,that will be a great Investment.
But always verify the growth rate for the next years.
D. CYCLICALS - These companies face boom and bust Cycles. Their products are not regularly used.
One may find the opportunity at beginning of cycles if he understands the Cycles well
E. TURNAROUND-These companies face "Do or Die" situation. If they recover from their pitfalls, they reward the shareholders most.
Among 10, only 1/2 companies can recover,the rest go bankrupt
E. TURNAROUND-These companies face "Do or Die" situation. If they recover from their pitfalls, they reward the shareholders most.
Among 10, only 1/2 companies can recover,the rest go bankrupt
F. ASSET PLAYS- The Value of Assests like --
•Patents
•Real estate
•Subscribers
•Natural Resources
- may be overlooked by the market.
If ASSET VALUE >MARKET CAP,
buy & hold until they're realised.
•Patents
•Real estate
•Subscribers
•Natural Resources
- may be overlooked by the market.
If ASSET VALUE >MARKET CAP,
buy & hold until they're realised.
4. TEN TRAITS OF 10X
A. Dull or ridiculous name of the company.
B. Company do stupid things.
C. Company does something
D. Institutions/Analysts don't own or follow it.
E. Company is temporarily facing problem.
F. Industry is not growing.
G. It's got Niche(Moat)
A. Dull or ridiculous name of the company.
B. Company do stupid things.
C. Company does something
D. Institutions/Analysts don't own or follow it.
E. Company is temporarily facing problem.
F. Industry is not growing.
G. It's got Niche(Moat)
H. Recurring Revenues (Subscription based)
I. The insiders are buying.
J. The management is buying back shares.(Good Sign)
I. The insiders are buying.
J. The management is buying back shares.(Good Sign)
5. FIVE TRAITS OF REVERSED TENBAGGER
[DON'TS]
A. HOT INDUSTRY- Higher Competition eats the profit margin.
B. IT'S "NEXT" SOMETHING-
Avoid Company,that is called-
Next Google,
Next Amazon,
Next Microsoft.
C. DIWOSRSIFICATION -Avoid Companies that acquire unrelated company
[DON'TS]
A. HOT INDUSTRY- Higher Competition eats the profit margin.
B. IT'S "NEXT" SOMETHING-
Avoid Company,that is called-
Next Google,
Next Amazon,
Next Microsoft.
C. DIWOSRSIFICATION -Avoid Companies that acquire unrelated company
D. DEPENDENCE ON SINGLE CUSTOMERRed flag to Such company
E. WHISPER STOCKS-A rumour circulates that the company is the target of a takeover offer. As a result,we see immediate surge in trading volume and an increase in its share price
Avoid such Stocks
[Buy Quality,Always]
Red flag to Such companyE. WHISPER STOCKS-A rumour circulates that the company is the target of a takeover offer. As a result,we see immediate surge in trading volume and an increase in its share price
Avoid such Stocks
[Buy Quality,Always]
I hope You enjoy this.
Thank you for reading this.
Thank you for reading this.
