彼得·林奇的成功投資 (One up on Wall Street - Peter Lynch)

Just scanned the book, and impressed by the suggested idea of identifying investment target from daily lives.


I tried to summarized the stock-picking tips as follow:

1) PED <=1, the higher growth rate the better
2) debt/equity < 1/3
3) consistently growing dividend
4) high earning before tax
5) high level & proper usage of cash
6) high free cashflow (cashflow less capital expenditure)
7) inventory should not grow faster than sales revenue
8) pension asset >= pension liabilities
9) high operating profit margin (for long term investment target only, may not be true for short term)
10) buy right stock at the right price, sell only when the fundamentals deteriorates. (e.g. for blue chips, sell when p/e much higher than industrial average)