Peter Lynch and Philip Fisher (Peter Lynch, John Rothchild, Philip A. Fisher)
Trader's Library #69 · Investing and the stock market. Two legendary investors on how to understand companies.
Author: Peter Lynch, John Rothchild, Philip A. Fisher · Original: Beating the Street; Common Stocks and Uncommon Profits · Year: 1958 · Usefulness for traders: ★★★☆☆
What it's about
“Beating the Street” is by the manager of the Magellan fund, who achieved outstanding results for 13 years, written with John Rothchild. Fisher's “Common Stocks and Uncommon Profits” is the classic of growth-stock analysis with the “scuttlebutt” method of gathering information from customers, suppliers and competitors.
What it gives a trader
Both books teach you to understand a business, not a chart. For an index trader the value is indirect: they help you understand why company earnings and long-term investors' expectations drive big trends.
Lessons for traders
- behind a long-term stock trend are company earnings
- your own research is better than someone else's recommendation (authority bias, Atlas of biases #30)
- patience is the long-term investor's edge
What to watch out for
Books for stock investors. They don't cover short-term trading.
Discussion
The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →
Navigation
← #068 The Psychology of Money (Morgan Housel) · Library index · #070 The Little Book That Beats the Market (Joel Greenblatt) →
Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.