. >> from peter lynch. >> and i went to the mall. >> i'm fairly new. to stocks. >> and i. >> came across. >> o n o n on cloud. >> premium shoe apparel company. >> i started. >> doing research. >> i realized. >> a my daughter wanted these. >> for christmas. i see all of her. friends wearing them. i also noticed that. >> a 65. >> year old sports reporter. >> was wearing them. i work in professional baseball for almost 30 years. i walked in and saw my equipment manager with their website on his computer. i said, is it all cloud? he said, yeah man, i was at. >> dick's and i think you're right now peter lynch. peter lynch what what tom what what david is saying is basically the way you need to do. i'm sorry it wasn't david, but it was on, on it was josh in arizona that that this is what he's doing is really important, which is what he's basically saying is he saw it on many, many people, checked it out. and i think he's right. i think they're on a tear. i think they're still there. i see nike maybe coming back, and i know that that new balance is back. but

first popularized by the legendary peter lynch.comparing a stock's growth rate to its price to earnings multiple. if you want to figure out the maximum the growth guys would be willing to pay for a stock, you need to be able to look at the world according to garp. if you want to learn more from peter lynch, it's easy. go to amazon and buy one up on wall street or beat the street. these are two of the most important investing books ever written. now here's a quick and dirty rule of thumb that's hardly ever let me down. although there are some exceptions a rule that can really help us figure out when a stock might be overvalued or undervalued based on what the growth and value managers would be willing to pay. if a stock has a price to earnings multiple that's lower than its growth rate, then that stock is probably cheap. and any stock selling at a multiple that's more than twice the size of its growth rate is probably too expensive. so if the stock's trading at 20 times earnings and it has a growth rate of 10%, then it probably does

the great peter lynch for putting that in my head. again, if you've got the time and the inclination to trade, that's great. however, most people don't. when you've got a full time job and you're trying to manage your own portfolio, you need to be willing to sit tight with the stocks you believe in. there will be sell offs. there will be rotations out of one group and into another. there will be crazy action on a week to week and even day to day basis. you don't have to constantly adjust your holdings based on these moves. if you believe in the stocks you own, and you shouldn't own anything that you don't believe in, then you should be willing to stick with them. when the backdrop gets tough. ideally, you'd be able to trade in and out, but like i told you, the best is the enemy of the good. in reality, when everybody's panicking over the latest crisis, you're going to be tempted to panic too and just sell everything. get out now. you might even avoid a substantial decline by bailing on the whole stock market. sooner or later, you're g

first, he was familiar with the tried and true methods of peter lynch, the legendary portfolio managerously adopted a position of keeping his eyes open for intriguing ideas, especially in the mall. once he spotted something that was selling well, he'd then begin the research. but when you go about buying a stock from observation, you have to recognize that it's the beginning of the process, not the end. of course, josh understood the sports business, and he'd done more than just spot a hot shoe on a couple of fish. but let me give you exactly what you need to do before you pull the trigger. step by step in situations like this. first, just because you see it on a lot of people's feet doesn't make it a winner. otherwise, we'd have been buying vf corp all the way down or sunsetting a vance. we might have stumbled on hoka after many others had already spotted it. you can't say you're early on the growth path holdings 21 bucks two years ago. now it's at 51. you may have spotted it too late. second, you need to recognize how hard this particular part of the retail world is. just look at und

it was the top performing mutual fund of its time, run by the great peter lynch, who has written two investment books one up on wall street and beating the street, still available on amazon. they are fabulous. yet, though i didn't save enough when i got to college, the money paid was work study anyway, and it went toward my tuition, room and board. but when i got out of college and after multiple attempts to get a job in the newspaper business, i was rejected by 57 papers. i still have the rejections. i've saved every one of them. i hate everybody who rejected me. and never mind, i land a position as a general assignment reporter at the democrat, making 150 bucks a week, 150 bucks a week was not a lot to really kind of. well, anyway, i still got a tattered pay stub. i've got it in an old wallet to remind me of how hard it was when i got started. nevertheless, you know what i still saved? i put a few dollars away when i could. a few dollars, i mean, like maybe $4. not that long after that, i applied and got a job at the now defunct los angeles herald-examiner that was a horrible job,