Just got “One Up on Wall Street”, by Peter Lynch.
I don’t know if you recall, but in the aftermath of 2008, when stocks had moved up again, people were saying how similar the patterns were to 1929.
I love this quote on page 21: “Market commentators fill airspace and magazine space with comparisons between today’s market and some earlier market, such as ‘This looks a lot like 1962’, or ‘This reminds me of 1981,’ or when they’re feeling really gloomy, ‘We’re facing 1929 all over again'” That Peter Lynch, writing in 2000.
If I had to distill the essence of Peter Lynch’s advice, it would seem to be from page 12: “I own stocks where results depend on ancient fundamentals: a successful company enters new markets, its earnings rise, and the share price follows along. Or a flawed company turns itself around.”
Although there’s nothing “unobvious” in that advice, I don’t think it’s the way most of us invest – and I include myself as having committed these sins, too.
My successes this year have really been down to small growth companies, and succeeding turnarounds. Where I’ve bought mediocrity, I’ve generally met with mediocre results.