Key Points from Book: Beating The Street

Good company usually increases its dividend every year

You have to research the company before you put your money into it

When you invest in stock market you should always diversify

Just because a stock goes down doesn’t mean ut can’t go lower

Over the long term, it’s better ti buy stocks in small companies

Hold no more stocks than you can remain informed on

You want to see first, that sales and earnings per hsare are moving forward at an acceptable rate and, second that you can buy the stock at a reasonable price

You can’t see the future through a rearview mirror

Put as much money into stock funds as you can. Even if you need income, you will be better off in the long term to own dividend paying stocks and to occasionally dip into capital as an income subtitute

Know what kinds of stock funds you own. Compare apples to apples, don’t blame gold fund manager for failing to outperform a growth stock fund

Spwhen you add money to your portfolio, put it into the fund that’s invested in the sector that has lagged the market for several years

A company with a high p/e that’s growing at a fast rate will eventually outperform one with lower p/e that’s growing at a slower rate

It’s always a good sign when a company is taking in more money than it spends. Cash flow exceed capital spending

When used car prices are on the rise, it’s a sign of good times ahead for the automakers

In the gold rush the people who sold picks and shovels did better than the prospectors

Often, there is no correlation between the success of a company’s operation and the success of its stock over a few months or even a few years. In the long term, there is a 100% correlation between it.

The biggest losses in stocks come from companies with poor balance sheets

A decline is a great opportunity to pick up bargains left behind by investors whi are fleeing the storm in panic

Everyone has the brainpower to make money in stocks. Not everyone has the stomach. If you are succeptible to selling everything in a panic, you ought to avoid stocks

Sell a stock because the company’s fundamental is deterioraring, not because the sky is falling

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About Kevin

Kevin is a research analyst at a macro research firm and a private fund manager since 2012. He holds a Master of Management in Finance degree from McGill University and has passed all levels of CFA and FRM exam. Kevin is an avid traveler and photographer, with a record of 33 countries visited in 2019. He is a freelance contributor at Getty Image and is running two website in his spare time, journeyman.live and putamencapital.com
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