Beating the street

As a young guy, I purchased Peter Lynch's Beating the Street to assist with my share investing education. the lessons in this book are squarely aimed at the New York Stock Exchange on Wall St. 

I took some of the lessons learned and tried to apply them to the Australian Stock Exchange, whilst this was good advice to seek out value following smaller capitalised shares. I soon learned that the ASX at the time didn't have the liquidity of the NYSE and the superannuation funds providing the liquidity for trading the leading 50 companies in the index and forget about it if the company wasn't in the leading 100 companies.

Sure, there are some specialist funds trading in smaller capitalised shares but they are in the minority. Even the larger Australian mutual funds tend to invest 30% of their fund in international equities and 25% of the fund in Australian equities with international funds cashing out when exchange rate risks bite. I quickly learned Wall St strategies didn't work out as well in the ASX as they did on the street - but then again, it might have been my execution.