Peter Lynch is a famous investment expert known for growing assets at Fidelity Investments from $20 million to $14 billion over 13 years. He advocates for a fundamental investment approach and emphasizes doing research on companies you understand. Some of his rules for investing include only investing in what you know, looking for unknown small companies, and recognizing that it is impossible to precisely predict markets. The document discusses different types of companies and growth rates to consider when evaluating investment opportunities.

1. Peter Lynch: One Upon Wall
Street
Sunjun Lee
Brandeies University

2. Who is Peter Lynch?
-Famous investment expert, one of the
most successful fund managers in the U.S.
-He grew assets of Fidelity Investments
from $20 million to $14 billion in 13 years.
-Lynch has written number of books on
investing, including One up on Wall Street.

3. Before we go on..
• “investing without research is like playing
stud poker and never looking at the
cards.” – Peter Lynch
• 2 types of investing analysis a)
Fundamental b) Technical
• Peter Lynch, Benjamin Graham, Warren
Buffet-> Fundamental Approach.

4. Quotes from the Book
• 110: no expert can precisely predict the
market.
• “if you spent more than 13 minutes
analyzing economic forecasts, you’ve
wasted 10 minutes.” –Peter Lynch
• 142: Stocks like GE is a good stock, but
since the market cap is about 1% of GNP,
high growth % is not possible. With
everything equal, invest in smaller caps.

5. Ground Rules
• Invest in what you know
-This ground rule applies to both amateur
and professional investors.
-It is good to find a new area to learn
about, but, always, be sure to invest in
the business, and the company that you
confidently understand.

6. Ground Rules
• Invest in stocks that other people do not
know.
There is not much opportunity in
companies that already have people’s
attention. Find boring, small, unknown
companies for the best opportunities.
Ex) Bare Essential

7. Ground Rules
• Mutual Fund
• If you do not have much time to do
enough research about the companies to
invest in, mutual fund is an option for
small returns.

8. Ground Rules
• It is futile to predict
• Don’t worry about the market noise.
Concentrate that energy to find more
fundamentals about the company that
you are investing in.

9. Types of Companies

10. Low Growth Companies
• Companies with growth rate that is
almost equivalent to GNP growth rate.
• The stock chart looks flat.
• Regular dividend payment-> they don’t
focus on expansion because they are
already big.

11. Big Blue Chip companies
• Yearly growth about 10%
• Stable in economic fluctuation
• Low risk, low return.
• Avoid diversification, and overvaluation.

12. Growth Companies
• 20~25% yearly growth.
• Financial structure is pretty fragile
compared to blue chip companies.
• Check if the financial structure is firm,
and possibility for quick expansion.

13. Economic based companies
• Returns, and stock prices depend on the
economy for this type of stocks.
• Look for inventory, and current market
supply and demand.
• With an edge in the near future in the
market, it is possible to gain profit from
investing in this type of companies.
• Timing is Key

14. Transitional Companies
• High Risk, but high return could be
achieved if the transition is successful.
• Look for possibility if the company could
come back.
• Lynch compared to criminals, homeless
people, with healthy body.

15. Asset centered companies
• The asset that you know is undervalued
in the company, but others don’t know.
• The asset could be real estate, cash,
bond, or even a management team.
• With the right edge in the asset the
companies own, you could expect return
as the asset gets correctly valuated.

16. Little piece of advice
• Invest only with amount that the loss
from investment will not affect your
everyday life.
• Know thyself.

17. You can find the book at
• http://www.amazon.com/One-Up-Wall-
Street-
Already/dp/0743200403/ref=sr_1_1?ie=U
TF8&qid=1416346312&sr=8-
1&keywords=one+upon+wall+street