Peter Lynch Beating the Street
Saturday, April 25th, 2009Peter Lynch Beating the Street, Peter discusses how and what stocks to buy, get some of his tips on these tapes to reach your financial goals.
I am listening to the 1993 Peter Lynch Beating the Street. He quickly gets into his experience and
illustrates how past decades have shown stocks to always beat bonds except 1 decade based on the date
of this tape. He gives many great tips on when or what to buy when it comes to stocks. Understand reasons for growth. He talks about bonds paying for the national debt. He just believes stocks are based on dividends being raised and companies getting bigger, that’s why stocks are better. Peter talks a lot about buying stores or companies you understand and like. I have heard a lot of the same ideas from Phil Town. This seems to be a common theme when choosing stocks, you should invest with what you know. He talks about looking out for which stores are popular, busy, and have a big following and paying attention to those. He talks about stocks selling at their growth rate, and he is concerned about franchises that grow too quickly. He gives some examples on Walmart and the body shop. He is talking about Toll Brothers and how it was recommended, at the time of this writing 16 years later, it isn’t going so well for them based on the news. He mentions the Saddam sell off in the stock market.
He is talking about Pier 1, how did that one turn out? He talks about how to analyze and do a balance sheet for a company when deciding to buy the stock. He talks some about P/E ratios. He does talk some about recessions a little bit. He talks about companies when they get in tougher times with less profit don’t spend money lavishly and don’t give out bonuses. He covers S & L’s and including good and bad ones. He talks about a lot of the ones that have failed. He talks about Equity assets to value ratio. On the 2nd tape he is now talking about how fannie mae and freddie mac are such a good deal, it’s amazing how times change. He has a long part on the tape about Fannie Mae, it’s history and how the company operates. This is an interesting tape, he knows his stuff. I find it a great learning tool based on what he picked right and what he picked wrong reflecting back over all of the years now since this was released.
