The Peter Lynch Investor » Newsletter » Nick Sleep letters - Chapter Two

Nick Sleep letters – Chapter Two

The second chapter of the Nick Sleep letters is good. In it he discusses two investments, Monsanto and Xerox. He also gives us a book recommendation and discusses the advantage of being a long-term investor.

The two investments he discusses, Monsanto and Xerox I won’t go into too much detail. The Xerox discussion is particularly long and better digested by reading through it on your own time. However, I will say this about it. It is an example of how good investment opportunities arise when you look past short-term bad news.

Sleep also discusses the value in being a long term investor. Since most investors are focused on short term gains any information, good or bad, can exaggerate the price of a stock.

He illustrates the folly in taking this approach by using the example of Estee Lauder.

The last topic Sleep brings up in this chapter is the investor Fred Schwed. I’ve never heard of him. Sleep discusses Schwed’s book, Where are the Customers Yachts? It looks like I have another investing book to read!