LITERATURA “VALUE” IMPRESCINDIBLE: ONE UP ON WALL STREET
Peter Lynch escribió este libro hace más de 20 años pero creemos que su contenido forma parte de la literatura imprescindible para cualquier inversor que se rija por la filosofía “valor”. En el post de hoy repasamos algunas de las frases célebres y que día a día nos sirven como guía para seleccionar compañías. Esperamos que sean de vuestro interés y que si discrepáis o deseáis matizar algún punto iniciemos un debate abierto para todos.
- Don`t own what you don`t understand.
- Getting the story on a company is a lot easier if you understand the basic business.
- Invest in things you know about.
- Superior companies will succeed and mediocre companies will fail. The effect is most striking in weak markets.
- Finding the promising company is only the first step. The next step is doing the research.
- What to look for in a company: 1) sales breakdown; 2) PER vs growth; 3) cash position; 4) debt; 5) dividends; 6) book value; 7) cash flows; 8) inventories; 9) growth rates; 10) pre-tax profit margin.
- There are 6 categories of companies: slow growers, “stalwarts”, fast growers, cyclicals, asset plays and turnarounds. Putting stocks in categories is the first step in developing the story.
- If it`s a choice between owning a stock in a fine company with excellent management in a highly competitive and complex industry, or it`s a humdrum company with mediocre management in a simpleminded industry with no competition, I`d rather take the later. For one thing, it`s easy to follow. “Any idiot can run this business” is one characteristic of the perfect company. And the perfectly simple business must have a perfectly boring name, that`s another starting point.
- It`s better if it`s a no growth industry because there`s less “sound” and no problem with competition. Specially one that is boring and upsets people.
- I always look for niches and products that people have to keep buying it.
- Call the company. What you really want from investor relations is the company`s reaction to whatever script you`ve been trying to develop. Asking about the competition is one of my favourite techniques for finding promising new stocks. Nothing could be more bullish than begrudging admiration from a rival.
- There are five ways a company can increase earnings: reduce costs, raise prices, expand into new markets, sell more of its products in the old markets; or revitalize, close or dispose losing operations. If you can`t predict future earnings, at least you can find out how a company plans to increase its earnings. Then you can check periodically if the plans are working out.
- Avoid any of those would – be, could – be, might – be, soon – to – be… tales. If they aren`t already doing it, then don`t invest in it.
- All else being equal, 20% grower selling at 20x EPS is a much better than a 10% grower at PER 10x. It`s all based on the arithmetic of compounded earnings.
- Selling a fast grower because the stock seems slightly overpriced is a losing technique.
- Once you are able to tell the equity story of a stock to your family, your friends, or the dog, and so that even a child could understand it.. you got it!
PD: Hemos preferido evitar la traducción al castellano para mantener la esencia del autor.