56 pages 1 hour read

Peter Lynch

One Up On Wall Street: How to Use What You Already Know to Make Money in the Market

Nonfiction | Book | Adult | Published in 1988

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Part 2, Chapters 6-10

Chapter Summaries & Analyses

Part 2: “Picking Winners”

Part 2, Chapter 6 Summary: “Stalking the Tenbagger”

Lynch focuses on identifying high-return investment opportunities, often referred to as “tenbaggers” (stocks that increase tenfold in value). He emphasizes that the best investment opportunities can often be found in familiar settings such as workplaces or everyday shopping experiences. Lynch notes, “The average person comes across a likely prospect two or three times a year—sometimes more” (95).

He encourages investors to be attentive to successful products or services they encounter in their daily lives. For example, employees at a company like Pep Boys would have noticed the business’s success long before it became apparent to Wall Street analysts. Similarly, people involved in various aspects of a company, from employees to suppliers and customers, can gain valuable insights into its potential.

Lynch discusses how people in certain professions, like real estate professionals with property development companies, have an “edge” in identifying promising stocks in their fields of expertise. They can spot investment opportunities before they become widely recognized in the market.

Lynch’s key message is that everyday observations and knowledge can be powerful tools in identifying successful investment opportunities. He encourages investors to use their unique perspectives and insights to find these hidden gems.