Victory over Wall Street-25 investment rules by Peter Lynch

1. Investment is interesting and exciting, but if you do not study fundamentals, it will be very dangerous.

2. As an amateur investor, your advantage is not the so-called professional investment advice from Wall Street investment experts. Your advantage lies in your own unique knowledge and experience. If you make full use of your unique advantages to invest in companies and industries that you fully understand, you will surely defeat those investment experts.

3. Over the past 30 years, the stock market has been dominated by a group of professional institutional investors. However, this is the opposite of ordinary people's ideas, which makes it easier for amateur investors to achieve better investment performance. Amateur investors can beat the market by ignoring this group of professional institutional investors.

4. Every stock is actually behind a company. You have to figure out how the company operates.

5. This is often the case. In the short term, for example, for months or even years, the performance of a company is irrelevant to its stock price. However, in the long term, a company's performance is fully related to its stock price. Figuring out the difference between short-term and long-term performance and stock price performance is the key to making money on investment. It also shows that if you are patient and have a final return, you can choose the stocks of a successful enterprise to make a successful investment.

6. You have to figure out what the fundamentals of your shareholding company are, and you have to figure out why you hold the stock. Good, the child will grow up after all, but the stock will not eventually rise.

7. I think that once I make a bet, I will make a big profit. As a result, I often lose a big bet.

8. Think of stocks as your children, but you cannot raise too many children and invest too much in stocks. If you invest too much, you can't take care of them. An amateur investor, even if using all his spare time, can only research at most 8 to 12 stocks, and can only find the opportunity to buy and sell only when conditions permit. Therefore, I suggest that amateur investors should not hold more than five shares at any time.

9. If you cannot find the stock of a listed company worth investing in, keep away from the stock market and deposit your money in the bank until you find a stock worth investing.

10. Never invest in a company stock that you don't know about its financial status. Investors often suffer from bad stocks with poor balance sheets. Before buying a stock, check the company's balance sheet to see if the company has sufficient solvency and whether there is any risk of bankruptcy.

11. Avoid hot stocks in those hot industries. The stock of outstanding companies in the unpopular and non-increasing industries will often become the most profitable bull stocks.

12. For small company stocks, you 'd better hide and wait patiently. When these small companies start to make profits, it is not too late to consider investment.

13. If you are planning to invest in an industry that is currently in trouble, you must invest in the stocks of companies that are able to survive the storm and wait until the industry shows a signal of recovery. However, industries like the horse-drawn whip and e-tube are never expected to recover.

14. If you invest 1000 yuan in a single stock, even if all losses are lost, you may lose 1000 yuan or even 1000 yuan at most. Amateur investors can focus on the stock of a few outstanding companies, but fund managers have to invest separately according to regulations. When the number of shares held by amateur investors is too large, the advantage of concentrated investment over professional institutional investors is lost. As long as a few large bull stocks are found and concentrated investment is made, the time and energy spent by amateur investors in their life is far from worth the money.

15. In any industry and any place, amateur investors who normally observe will find outstanding high-growth companies, and find that the time is far earlier than those professional investors.

16. The stock market often suffers a sharp drop in the stock price, just as in the Northeast Region during the severe winter. If you make full preparations in advance, there will be no harm at all. When the stock market fell sharply, investors who did not have preparations in advance would be scared, panic, cut meat at a low price, escape from the stock market, and many stocks would become very cheap, it is a great opportunity for low-price buyers for investors who are prepared early in the future.

17. Everyone has the wisdom to invest in stocks to make money, but not everyone has the courage to invest in stocks to make money. Only by knowing and daring can they make a lot of money in stock investment. If your stock market is vulnerable to other people's panic and you are scared to drop all your stocks, you 'd better not invest in stocks or stock funds if you are timid.

18. There is always something to worry about. Don't worry about the alarmist analysis and comments in the weekend newspapers, or the pessimistic predictions in recent news reports. Don't be scared to worry that the stock market will crash and sell in a rush. Rest assured that the sky will not collapse. Unless the company's fundamentals deteriorate, never panic and throw out a good company stock.

19. No one can predict future interest rate changes, macroeconomic trends, and stock market trends in advance. Ignore any future interest rate, macro-economy and stock market forecasts, and focus on what is changing your investment company.

20. If you study 10 companies, you will find a better company than expected. If you study 50 companies, you will find five better companies than expected. In the stock market, there will always be surprising unexpected discoveries, that is, the stocks of good companies with good performance but ignored by professional institutions.

21. If you do not study the fundamentals of a company, you can buy stocks. Just like playing cards without cards, you have little chance of making money.

22. When you hold a company's stock, time will be on your side. The longer you hold your stock, the more chance you will make money. A patient holding of a good company's shares will eventually return well. Even if you miss the first five years of stock growth in a great company like Walmart, long-term holding of such stocks will return well in the next five years. However, if you hold stock options, time will be on the opposite side of you. The longer you hold, the less chance you will make money.

23. If you have the guts to invest in stocks, but you have no time or interest in Studying fundamentals, your best choice is to invest in stock investment funds. You should invest in different stock funds separately. The investment style of fund managers can be divided into growth, value, small inventory, and large inventory. You should invest in several different types of stock investment funds. Investing in six stock funds with the same investment style is not a decentralized investment.
If investors exchange funds between different funds, they will pay a huge price and have to pay a high capital profit tax. If the performance of one or more of the funds you invest in is good, do not discard them. Instead, you must hold them for a long time.

24. In the past 10 years, the average ROI of the U.S. stock market ranked only 8th in the global stock market. Therefore, you can purchase funds that invest in overseas stock markets and have good performance, to share the high growth of the stock markets in other countries outside the United States.

25. In the long term, when you invest in a portfolio composed of carefully selected stocks or stock investment funds, the performance must be far better than a portfolio consisting of bonds or bond funds. However, it is better to invest in a portfolio composed of randomly selected stocks to make money safer.