Book Report for ‘One Up on Wall Street’
Peter Lynch is one of Wall Street’s most successful mutual fund managers. Having assumed the reigns of Fidelity’s Magellan fund in 1977, Mr. Lynch grew the fund to nearly $14 billion-which was an astronomical number for any mutual fund at that time- before he relinquished control of the fund’s investments in 1990. To simply illustrate the success of Fidelity Magellan, and investor who placed $10,000 in the fund in 1977, and then held on, would have watched his or her investment grow to $280,000 under Mr. Lynch’s 13-year tenure. It ranked as the number one mutual fund in the nation over that period of time.
An avid proponent of individual stock picking, an unusual agenda for a mutual fund manager, Mr. Lynch lamented the increasing tendency for investors to abrogate their investment decisions exclusively to fund managers. His two popular books are Beating The Street and One Up On Wall Street represent his best efforts to slow or reverse this trend.
One Up on Wall Street is the first book that is published by Peter Lynch. It is a very well written book and in the investment community, everyone considers it as a classic. In his book, he only gives very brief information about himself and directly gets into what he wants to say. His main point in the book is that when it comes to investing, individual investors have an advantage over institutions. In order to prove the main point of the book, Lynch gives detailed information about the disadvantages that institutions face with while investing money. For example, he mentions the restrictions on the type and the number of stocks that institutions can buy. He mentions that the important thing is not listing the pros of investment industry but learning how to know investing your money.
In the opening of the book, there is an argument from Lynch on behalf on “tenbaggers” which refers to stocks that increase in value ten times from their initial investment. For example, if someone...