One Up on Wall Street - Peter Lynch

[TSR Capital]

This is one of the best books I've ever read.  It's mostly about do-it-yourself stock picking, and it's pretty Mustachian.

It's written by Peter Lynch, a very successful mutual fund investor in the 1980s.  Unlike most fund managers, he actually beat the stock market consistently.  By a lot!

http://www.amazon.com/One-Up-On-Wall-Street/dp/0743200403/ref=sr_1_1?ie=UTF8&qid=1370987615&sr=8-1&keywords=peter+lynch

[MgoSam]

Random question, I would like to take money out of my Vanguard fund and put it towards individual stocks. A friend of mine said to take about 10,000 from it and use that. What do you think of that idea? Also, what brokerage would you recommend?

I haven't because I haven't done research on the companies, and don't know how to start. Would Lynch's book be a good way?

[TSR Capital]

Vanguard or Fidelity would be a good place for stock trading. 

I'd read Lynch's first two books.  Those are a great place to start.

Investing takes skill and experience.  I wouldn't rush into anything.  Take your time and learn first.

[workwheniwantto]

I use various sources to select stocks, but I use ultra-discount brokers to place trades.  Currently I am using Optionshouse ($4 trades) and have yet to have a reason to change.  If you plan on using them, please contact me for a reference (so I can get a free $150 from their marketing department.  Not sure if I am allowed to share some of it with the person I am referring.)

[MgoSam]

Thanks for your response. Due to work and a few other things, I haven't studied up enough on the stock market to feel comfortable investing in stocks, would rather use index funds to get coverage in the market until I am more comfortable.

If I do end up using Optionshouse, I will let you know as you deserve the credit for the recommendation.

[hodedofome]

I enjoyed the book but most of it seemed to be his story, not how to actually beat the market. Reading between the lines, he's a multi-strategy guy who was in a world of one trick ponies. He's a value investor, growth investor, special situation investor all in one. Most guys are just one of those. The main point most investors should take from the book is to invest in what you know and understand, and stay away from everything else. That's something that applies to all of us.