Tuesday, May 24, 2016

Creative Expressions; Stocks; Peter Lynch;

Gloriously sunny day... with a few clouds hovering but not coming near.  Temperature got to 84 where Elaine and I were, in Reisterstown.  We went to a Doctor's Appointment for Elaine. 

Music in my head today:  It's a melody from the 20's or 30's.. it may not have a name, but it probably has something to do with the sun, now that I know that's the music I hear in my head is sometimes triggered by the weather.

No Writer's Cramp?

Recently, I submitted a little life story to Carroll Lutheran Village's literary publication, called Creative Expressions.  The editors changed it a bit.. to show numbers written out instead of being numerical, and substituted commas instead of colons, where necessary.  So, the story is basically as I wrote it.   Not like last year, when my story was drastically altered.  They destroyed the whole effect that I was trying to make, so I complained... loudly.  We compromised, by adding a side note that said, in effect:  "This work has been written in the style of Ernest Hemingway" and leaving it the way I wrote it.


Let's Talk Stocks

A few years ago, someone sent me a document titled: "20 Golden Rules".  It is a Xerox copy of something written by Peter Lynch and published by Simon and Schuster.. other than that, I don't know where it came from.  I'll try to summarize the rules.

01.  Invest in companies and industries you already understand.

02.  Beat the market by ignoring the "herd."

03.  Be patient, and try to own successful companies.

04.  Know what you own, and why you own it.

05.   Don't try for long shots.

06.   Try not to have more than five companies in your portfolio at any one time.

07.    Don't buy any stock from companies that you think are not attractive.

08.    Never invest in a company  without understanding its finances.

09.    Avoid hot stocks in hot companies.

10.    Don't invest in small companies until they turn a profit.

11.    You need to find only a few good stocks to make a lifetime of investing  worthwhile.

12.     An observant amateur can find great growth companies before the professionals do.

13.    A decline is a great opportunity to pick up bargains left by investors who have fled.

14.    If you are susceptible to selling in a panic, stay away from stocks and bonds.

15.    Don't sell your stocks just because someone says that the "sky is falling."

16.    Don't rely on predictions.. just concentrate on what is happening with your companies.

17.    Find those companies whose achievements are being overlooked by Wall street.

18.    You must study your companies... or you will lose.

19.     Be patient... current bad events may turn to better events in the long term.

20.     Choose wisely and you will outperform bonds or money-market accounts.

I've editorialized these "rules" to fit my understanding of what Mr. Lynch wrote.  I could be all wet on this... so, the best thing to do is to find some of Peter Lynch's written works and read them on your own. 

Peter Lynch knows what he is talking about.  He served the Magellan Fund at Fidelity Investments from 1977 to 1990.  During that time the fund averaged an annual return of 29.2% and was called the best performing mutual fund in the world.  What else would you expect from a Massachusetts native who was educated in Boston?  By the way,  two of the books that's he wrote are:  "Beating the Street" and "Learn to Earn."   Read his books and get rich,  young man.


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