Forkids Business Guidelines

Peter Lynch is a true legend on Wall Street during the 13 years in managing the Fidelity Magellan Fund, managed to beat every year by far the indexes and other investment funds. Lynch began to successfully manage the Magellan when he was still an unknown substance and ended successfully managed a creature who had become the largest investment fund size of its time during those 13 years getting a return of 30% per annum. In his book Beating the Street do a free translation of some of his golden rules:
- Investing is fun, exciting and dangerous if you do not do their homework.

- Behind every action there is one. Learn to be dedicated.

- Often there is no correlation between success and performance of a company and changing its price in the following months or even years. But long term, the correlation between the performance of a company and its price is 100%. Is market failure is the key to making money. Reward to be patient and buy shares in successful companies.

- You gotta know what you buy, and because the purchases. Guided by the feeling that an action is not going to go up.
- Owning shares is like having children. Have no more than you’re capable of handling. A part-time investor probably has the capacity to between 8 and 12 companies and have a 5 in his wallet.

- If you can not find any attractive company where the investing Beware money in the bank until you find out.

- Try to avoid buying shares in industries that are hot in fashion. Good companies in mature industries are consistent big winner.

- Never invest in a company that does not understand their financial statements. The major debacles in the price of a company often with a weak balance sheet.

- If you want to buy stocks of companies that are in an industry with problems, always buy shares of the leading companies in the industry and hopes to see the first signs of recovery before you buy.

- Everyone has the brain enough to make money on the stock exchange, but not everyone has enough stomach. Should you sell is subject to all of your portfolio in times of market panic, please do not invest in shares.

- Nobody can predict interest rates or changes in the economy or the stock market. Forget about all these kinds of estimates and Focus on what is happening to them now the companies in which it has invested.

- If you invest in researching the companies where you have the same probability of success in winning a poker game without looking at your cards.

- There are always signs of concern. But a sell action because the company’s fundamentals are deteriorating, not because the sky might fall.

- With small companies, it is better to wait to buy shares once they are generating profits.

- Notes on the street that companies are having success and believe that their products are great. With this technique you can find excellent investment opportunities long before the professionals.

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