Read more about the company's financial statements and investment reports of some investment companies, instead of stock reviews.
Peter Lynch financial management four don't.
Don't believe all kinds of theories.
For centuries, people have seen the sun rise after hearing the rooster crow, so they think the sun rises because the rooster crows. Today, chickens crow as usual. But every day, there are new arguments to explain the reasons and effects of the stock market rise, which is always confusing. Whenever I hear such a theory, I always think of the crowing rooster.
Don't trust the opinions of experts.
Experts can't predict anything. Although there is a subtle correlation between interest rates and the stock market, I don't believe anyone can explain the direction of interest rate changes in advance with financial laws. Those who believe that success is hard-won, and those who cultivate the concept of success and wealth for the next generation from an early age, are the people who master fate, wealth and believe in wisdom.
Don't trust mathematical analysis.
"Stock investment is an art, not a science". For those trained in rigid quantitative analysis, unfavorable factors will be encountered everywhere. If we can determine what kind of stock to choose through mathematical analysis, it is better to use computer fortune telling. The decision to choose a stock is not made by mathematics. All the math knowledge you need in the stock market was learned in the fourth grade of primary school.
Don't believe in investment talent
There is no genetic skill in stock selection. Although many people think that others are natural stock investors, they blame their failure on natural stupidity. My growing experience shows that this is not the case. I don't have a stock market recorder hanging on my cradle, and I didn't bite stock market trading records when I had deciduous teeth, which is contrary to Bailey's early wisdom of rebounding football when he was a baby. (Sun Yongmei)
Peter Lynch Grassroots Survey Stock Selection Rules Investment Procedures
Peter Lynch was rated as the most legendary fund manager in history and the best stock picker in the world by American fund rating companies. His investment philosophy is characterized by making use of known facts to invest, with emphasis on grass-roots investigation (kicking tires). Investment preference is valuable in growth. Any kind of stock and industry, as long as it is a good company, may become the target of investment at a reasonable price, without judging the timing of the market. The following are the quantitative indicators used by Peter Lynch in stock selection:
Debt ratio ≤25% cash and equivalent cash-long-term liabilities >; 0 share price/free cash flow per share
Debt ratio ≤25% Net cash per share (lower limit of share price) > 0 Share price ÷ Free cash flow per share.
Because it is a necessary process for Peter Lynch to classify the characteristics of stocks when selecting stocks, such as slow-growing stocks, stable-growing stocks, circulating stocks, fast-growing stocks, asset stocks and resurrected stocks, their financial characteristics are all different. The indicators selected in this system are the parts with clear standards mentioned by Peter Lynch, but not all of them (some are used in Peter Lynch, but there are no clear standards).