One Up On Wall Street
by Peter Lynch · 1989
The everyday investor's edge, explained by the man who ran the best fund of his era.
Worth reading? Still the best book for ordinary investors who want to pick stocks themselves, and it'll save you from more bad tips than anything else on the shelf. If you've already committed to index funds, Lynch himself would wave you off, read Random Walk instead. Skip it if you've decided on index funds (Lynch himself would say that's fine).
| Full Title | One Up On Wall Street: How to Use What You Already Know to Make Money in the Market |
|---|---|
| Author | Peter Lynch |
| Published | 1989 |
| Category | Business & Money |
| Favorite quote | “Know what you own, and know why you own it.” |
The Verdict
Lynch ran Fidelity Magellan to 29% annual returns and wrote the friendliest serious investing book ever. Buy what you know, do the homework anyway, and know which of his six stock categories you’re holding. Some examples aged out. The discipline (understand the story before you buy the ticker) never will.
investors who want to pick individual stocks and need a sane framework
you've decided on index funds (Lynch himself would say that's fine)
Book Summary
You already have an edge the pros don't: you see products succeeding in your daily life before Wall Street notices, so use what you know. Buy what you understand, do your homework on the story behind the numbers, and categorize stocks (slow growers, stalwarts, fast growers, cyclicals) so you know which rules apply. Ignore the macro noise and market timing, pick good businesses at reasonable prices and hold while the thesis holds.
Top 7 Lessons from One Up On Wall Street
- Invest in what you know before the analysts do.
- Categorize the stock, a fast grower and a cyclical need different rules.
- Do your own research; the annual report beats the TV pundit.
- Ignore the economics forecast; you can't time the market reliably.
- Look for companies with hidden assets or a story the crowd missed.
- Sell when the reason you bought stops being true, not on a price tick.
- Beware of hot IPOs and anything everyone calls a sure thing.
Top 4 Quotes from One Up On Wall Street
"Know what you own, and know why you own it."
Peter Lynch, One Up On Wall Street
"Never invest in any company before you've done the homework on the company's earnings prospects, financial condition, competitive position, plans for expansion, and so forth."
Peter Lynch, One Up On Wall Street
"Investing without research is like playing stud poker and never looking at the cards."
Peter Lynch, One Up On Wall Street
"Big companies have small moves, small companies have big moves."
Peter Lynch, One Up On Wall Street
Frequently Asked Questions
Is One Up On Wall Street worth reading?
Yes, for investors who want to pick individual stocks with a sane framework. Skip it if you've decided on index funds. Lynch himself would say that's fine.
What is the main idea of One Up On Wall Street?
Ordinary investors can beat the pros by researching what they already know and buying understandable companies at sensible prices.
How long does it take to read One Up On Wall Street?
A quick read at around 96 pages, roughly 2 hours.
Who should read One Up On Wall Street?
Investors who want to pick individual stocks and need a sane framework. Skip it if you've decided on index funds (Lynch himself would say that's fine).
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