you want to learn more from peter lynch buy one up on wall street.t's the most inspirational books that are what i teach here than i ever met here. one up on wall street and beat the street by peter lynch at am is on. this is a rule of thumb that never let me down, a rule that can really help us figure out when a stock is overvalued or undervalued based on what they would be willing to pay. listen, if the stock has a priced to earnings multiple that is lower than it's growth rate, that's the definition of cheap. any stock that is selling at a multiple which is twice the size of it's growth rate or greater is probably too expensive and should be should. so if a stock is trading at 20 times earnings and has a growth rate of 10% it won't go higher than that. it reached the growth ceiling. here's another piece of gibberish that can help you simplify, it's the peg, price to earnings to growth rate. a peg of one or less is extremely cheap. and two or higher is prohibitively expensive. a high okay tan super fast grower like google could sell for 30 times ea

>> well, making that point -- i remember years ago talking to peter lynch, he says look out in societyg, what people buy, and netflix is a great story because look what happened to netflix. it started low, and it's record high, and you mentioned this afternoon, something called sina corporation, s-i-n-a, and that's pointing out why you watch financial news and radio because look at sina recently. that's a good example. it had four pullbacks in the year, but it's a great company and stock. charles: right. i'm heavy in the dry bolt shippers. that's when you do extra work. you don't always have to do that. there's enough great companies out there for people to have building blocks of five to ten stocks. okay. i bought them, steve. i'm in the game. you sucked me many, my man, and now -- >> okay. charles: what happens? how do i ride out the wave? >> important to look for the downdrafts here because look what happened to dndn, stock blistered in three weeks. watch carefully. what i say in the notes today is that when your stock is down by, like, 6% or 7%, that's the caution light, yellow lig

we can learn from the world's greatest investors, the investment gurus like warren buffett and peter lynch

we can learn from the world's greatest investors, the investment gurus like warren buffett and peter lynchthe old scol approach still work in today's stock market? i say some of the dozens of the doesn't. i will discuss. and i always say the stock market is a reflection of us, america, our hopes, our dreams, our hard work and successes, and our failures. even our dispositions. see what stocks in telling us about how we feel about our neighbors. also tonight, we will speakith the ceo of a company in the middle of rebuilding america piece by piece. the story of opportunity and hope and inspiration that just may be a potential investment for your portfolio. so sit up, get off the couch, stop listening to the doomsayers. i believe in outing great american companies, and i know you can make this your market. ♪ charles: few things spook the market as much as uncertainty and anxiety. we have a double those above. the certainty of a u.s.-led strike grew today, it was underscored by headlines like these. the "wall street journal" reporting u.s. allies are laying around for a strike against syria. f

we can learn from the world's greatest investors, the investment gurus like warren buffett and peter lynch

it was run by the great peter lynch, who's written two investment books. two of the best investment books of all time. they're the ones i usually tell people to get after they've read my books and say i want to learn more. i didn't save enough when i got to college. the money paid was work study anyway and it went toward my tuition and room and board. but when i got out of college, and after a lot of attempts to get a job in the newspaper business, rejected by more than 50 papers, i had every single rejection letter in a trunk. i landed a position in tallahassee, making $156 a month. i still keep a tattered pay stub in my wallet to remind me of how hard it was and how poor i was. nevertheless, poor, $156, i contributed even then. i put a few dollars away when i could. not long after i applied to and got a job at the now defunct los angeles herald examiner. it was a horrible job. i was making $179 a week. it was more than tallahassee, but it was in a town that was about as four times as expensive as living in tallahassee. i was living in the fairfax distric

one up on wall street by peter lynch at magellan. he's retired. who just made me a fortune in my i.r.a. that is still the best indexing book ever written. stay with cramer. >>> remember everything i said about building long-term riches. you can't start investing unless you have health and disability insurance and you have paid off all credit card debt. that means finding your individual retirement account and your 401(k) up to employer match. you should still own a lot of stocks in these taoeurplt accounts. the mistake is to be so afraid of risk that you take yourself to poverty because you kept them in low-yielding bond funds. get all of that done and you'll be well on your way down the path to prosperity. never forget health and disability insurance. 50% of bankruptcies are caused by them. i'm jim cramer, and i will see you next time. i have the house rules of what you should and should not do. also... all the money in the world, all the mortgage-free homes -- everything -- will mean absolutely nothing to you, joe, if anything ever were to happe

"one up on wall street" by peter lynch. he's retired, who just made me a fortune in my i.r.a.nd that is still the best investing book ever written. stick with cramer. >>> they say money never sleeps. neither does jim cramer. follow @jimcramer on twitter. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ every day we're working to and to keep our commitments. and we've made

one up on wall street, "beat the street," peter lynch books, really terrific and i think they're greated. let's go to one from @jehamilton. "how many hours do you sleep each night?" i tend to get between three or four hours of sleep each night, except for friday night and saturday night, where i get about twice that. i believe you actually save up the sleep. if you get a lot of sleep on saturday night, you don't need to get a lot on sunday or monday and i don't. another great tweet comes from @pelagic104, who writes, "boo-yah, jim. just finished your book "you got screwed." great book. it's just as relevant today as when you wrote it. i thought that book would be popular, a lot of people didn't like the title. i will say this. it was spot-on about how wall street sometimes can really stab you right in the face, as well as the back. "mad money" is back after the break. >>> i like to say, there's always a bull market somewhere and i promise to try to find it just for you, right here on "mad money." i'm jim cramer. see you tomorrow! doors, killing dreams and costing tens of thousands of j

you look at netflix, the ultimate peter lynch stock. this is a company every company, they love the stock. last quarter wasn't quite what it was expected to be. facebook, the most important thing out of that call is when zuckerberg said soon we will have more revenue on mobile than desktop. bingo. and he's got to now make it happen. >> which stock, pete, would you bet on? >> facebook. 100%. zuckerberg, we talked about it for a long time but he's done it for three quarters in a row. he said their focus would be on the ads on mobile. they went from 0% to 41% of revenues. they talked about news feed as another add they love. they talked about video. they addressed what is the most important part of the earnings call when he said we didn't lose teens. everybody says we did, we didn't. we still have them, we own that market in the u.s., and they can still grow internationally. when you look at the ad growth and where they can go from here, that company could go a lot higher. >> i'm totally with you, pete, funny enough, facebook is the only o

"one up on wall street" by peter lynch. he's retired, who just made me a fortune in my i.r.a.ll the best investing book ever written. stick with cramer. >>> they say money never sleeps. neither does jim cramer. follow @jimcramer on twitter. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. we replaced people with a machine.r, what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. and experience the connectivity of the available lexus enform, including the es and rx. ♪ this is the pursuit of perfection. every day we're working to be an even better company - and to keep our commitme

"beat the street," peter lynch books, really terrific and i think they're great places to get startedfrom @j.e.hamilton. "how many hours do you sleep each night?" i tend to get about three or four hours of sleep every night, except for friday night and saturday night, write get about twice that. i believe you actually save up the sleep. if you get a lot of sleep on saturday night, you don't need to get a lot on sunday or monday and i don't. another great tweet comes from @104, who writes, "boo-yah, jim. just finished your book "you got screwed." great book. it's just as relevant today as when you wrote it. i thought that book would be popular, a lot of people didn't like the title. i will say this. it was spot-on about hour wall street sometimes can really stab you right in the face, as well as the back. "mad money" is back after the break. i'm beth... and i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game