As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
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Technical Analysis and Charting
Stock Tips

Friday, 29 September 2017

Peter Lynch on His Secret to Superior Returns

Lynch provides insight on how to achieve exceptional results

In an interview he gave to PBS, Peter Lynch discussed what is needed to achieve a track record similar to his. Even though the answer seems simple on the surface, it has many insights that are worth commenting on.

Q: Was that your secret?

A: Well, I think the secret is, if you have a lot of stocks, some will do mediocre, some will do OK, and if one or two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people. Some stocks go up 20% to 30%, and they get rid of it, and they hold on to the dogs. And it's sort of like watering the weeds and cutting out the flowers. You want to let the winners run. When the fun ones get better, add to 'em, and that one winner, you basically see a few stocks in your lifetime, that's all you need. I mean stocks are out there. When I ran Magellan, I wrote a book. I think I listed over 100 stocks that went up over tenfold when I ran Magellan, and I owned thousands of stocks. I owned none of these stocks. I missed every one of these stocks that went up over tenfold. I didn't own a share of them. And I still managed to do well with Magellan. So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes.


CW8888:

Sometime; Uncle8888 smiled when some people to like to quote fallen blue chips to blue black chips. So what are STI blue chips?

They are actually nothing more than survival chips. Some will survive long enough to make their shareholders rich enough and not having to worry anymore on losing their hard earned saving. Some will turn into Blue-black chips! The rest are so and so; but still providing Panadols to ease heartache!

How many retail really understand it?

How different from Peter's quote : So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes

There are 30 STI Blue Chips on quarterly survival-ship reviews; you just have to let that few blue chips bought on SGX Great Sales and let these few big ones make up for your losses in those few blue-black chips. 

You don't believe in Pete's quote?

you basically see a few stocks in your lifetime, that's all you need. I mean stocks are out there.

So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes.


10 comments:

  1. Readers out there who may want to ask CW out for kopi kosong, you may want to jio me along!

    I play the role of "got shadow or not" verification ;)

    Especially if you believe in the "clash of ideas".

    Don't believe?

    I'll show you.

    Of all the highlights, CW, you left out the most important "HOW" bit:

    "You want to let the winners run. When the fun ones get better, add to 'em, and that one winner."


    If you tell your readers your 10 bagger Keppel or Sembawang is only 1000 shares each, they will go, "Cheh!"

    LOL!

    I hope this settles the question of concentration versus diversification ;)




    ReplyDelete
  2. CW, you want to report your air craft carrier and sampan theory again?

    http://createwealth8888.blogspot.sg/2011/01/investing-made-simple-by-uncle8888.html

    ReplyDelete
    Replies
    1. Sorry ... it should be "you want to elaborate your..." :(

      Delete
    2. Elaborate will mean pen and paper or marker and white board. :-)

      Delete
    3. Lol... I don't need lah. It's for young investor.

      Delete
    4. Hihi bro cw

      Can i join in to listen only?? if u having kopi o session with others? I just sit 1 corner listen only... hehehe

      Delete
    5. May be you have realized that on these 1 to 1 kopi sessions; people may share more personally details for discussion so it is harder for external party to sit in.

      Quite a number came with their spouse; not surprising sometime when their spouse heard and said: You see. Uncle also said so. LOL!

      Delete
    6. Oic... understand... is it personal also... thanks ya :)

      Cheers
      Sy

      Delete
  3. How about not getting caught in the next Bear Trap?

    Make some money - happy Liu.

    ReplyDelete

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