Peter Lynch
Which one of these professions did Lynch not do: author, philanthropist, statistician?
What is statistician?
The largest demographic in Orman's audience
What are retirees and people looking to retire?
Buffett is the CEO of this conglomerate company, which owns businesses like Geico and Dairy Queen.
What is Berkshire Hathaway?
An investor who invests in an index fund (ex. Dow Jones, S&P500) and avoids single stocks
What is a passive/defensive investor
Something Mr. Sherry avoids influencing him when making investment decisions
What are his emotions?
What stock did Lynch invest in following his advice "Invest in What you Know"?
What is Dunkin Donuts
One of the scandals Orman was involved in
What is:
- lying about her bank card
- teaching at a private university, or
- taking payouts from big corporations?
The age of Warren Buffet
What is 94?
The cost that a stock SHOULD be at a moment in time
What is intrinsic value?
The reason why Mr. Sherry went into mutual funds
What is his school taught him to?
True or False: Lynch prefers short-term commitment to stocks
What is False
The amount of money Orman recommends retiring with
What is 5 million dollars?
Buffett is a proponent of this investing strategy, focusing on buying undervalued stocks with strong fundamentals.
What is value investing?
The cost that a stock should be at when buying it and the cost that a stock should be at when selling it (relative to its "worth")
What is less than its worth and more than its worth?
According to Benjamin Graham, the type of investor Mr. Sherry is
What is an active investor?
The name of Lynch's firm
What is Magellan Fund
Orman advocates for her audience to ignore investing in stocks in favor of this.
What is "saving money", or "being frugal"?
The is the amount that Warren Buffet has donated to charity.
What is $55 billion?
Why an investor who puts in some work finds less success than those who put in no work
What is because they attempt to beat the market/passive investors can virtually guarantee success by investing in the whole market
What is that it works but he thinks that libraries are better, because you can make decisions yourself instead of following Google?
Name one of Lynch's likes
The Underdog/ Ugly duckling: bad rumours, boring name, product or service is boring, since it can result in good bargains (eg. Waste Management)
Companies that have a niche market, only ones controlling market, less competitors
Companies whose products have consistent markets, throughout good and bad times (eg. drugs, soft drinks)
Publications who have critcised Orman's advice presented in her books
What is the Economist, the New York Times and Reuter's?
This is Warren Buffet's company's biggest holding right now.
What is Apple Inc?
DAILY DOUBLE: By the margin of safety principle and the market volatility principle, an optimal opportunity for investment in a stock/the stock market
BONUS: Hence or otherwise, what is the optimal opportunity for selling a stock?
What is when a stock has a significantly lower value than its "worth" and during times of market stress
BONUS: When a stock has a much higher value than its "worth" and when volatility brings the price to much higher than it should be
The reason Mr Sherry liked the Black Sholes
They made bank by creating and exploiting a mathematical model that valued options