"전설로 떠나는 월가의 영웅" 원서로 공부하기 56편: "폭락이 시작되기 10개월 전에" 영어로 어떻게 말하지?

* 전설적인 펀드 매니저 피터 린치의 "전설로 떠나는 월가의 영웅" 원서를 통해 투자공부와 영어공부, 두 마리 토끼를 모두 잡기 위한 컨텐츠입니다.

* 원서 제목은 "One up on wall street" 입니다.

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오늘부터는 10장입니다. 10장 Earnings, Earnings, Earnings

 

# People may wonder what the Japanese are doing and what the Koreans are
doing, but ultimately the earnings will decide the fate of a stock. People may bet
on the hourly wiggles in the market, but it’s the earnings that waggle the wiggles,
long term. Now and then you’ll find an exception, but if you examine the charts
of stocks you own, you’ll likely see the relationship I’m describing.

 

☞ wiggle : a short quick movement from side to side

 

☞ waggle : to move up and down or from side to side with short quick movements, or to make something move that way

Roger waggled his eyebrows suggestively.

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# During the last decade we’ve seen recessions and inflation, oil prices going up
and oil prices going down, and all along, these stocks have followed earnings.
Look at the chart of Dow Chemical. When earnings are up the stock is up.
That’s what happened during the period from 1971 to 1975 and again from
1985 through 1988. In between, from 1975 through 1985, earnings were erratic
and so was the stock price.

 

☞ erratic: changing often or not following a regular pattern, so that it is difficult to know what will happen next

He’s a good footballer, but a bit erratic.

the recent erratic performance of the markets

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# Look at Avon, a stock that jumped from $3 in 1958 to $140 in 1972 as
earnings continued to rise. Optimism abounded, and the stock price became
inflated relative to earnings. Then, in 1973, the fantasy ended. The stock price
collapsed because earnings collapsed, and you could have seen it coming. Forbes
magazine warned us all in a cover article ten months before the collapse began.

 

☞ 폭락이 시작되기 10개월 전에, 라는 표현을 어떻게 할까요?

ten months before the collapse began

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# And how about Masco Corporation, which developed the single-handle ball
faucet, and as a result enjoyed thirty consecutive years of up earnings through
war and peace, inflation and recession, with the earnings rising 800-fold and the
stock rising 1,300-fold between 1958 and 1987? It’s probably the greatest stock
in the history of capitalism. What would you expect from a company that started
out with the wonderfully ridiculous name of Masco Screw Products? As long as
the earnings continued to increase, there was nothing to stop it.

 

☞ faucet : a water tap on a bath or sink

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# Look at Shoney’s, a restaurant chain that has had 116 consecutive quarters
(twenty-nine years) of higher revenues—a record few companies could match.
Sure enough, the stock price has steadily moved up. In those few spots where the
price got ahead of the earnings, it promptly fell back to reality, as you can see in
the chart.

 

☞ 주가가 이익보다 앞서면 곧바로 되돌아온다고 합니다. 멋지게 표현했죠?

n those few spots where the price got ahead of the earnings, it promptly fell back to reality

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# The chart for Marriott, another great growth stock, tells the same story. And
look at The Limited. When earnings stumbled in the late seventies, so did the
stock. When earnings then soared, the stock soared as well. But when the stock
got way ahead of earnings, as it did in 1983 and again in 1987, the result was a
short-term disaster. The same was true for countless other stocks in the October,
1987 market decline.

(A quick way to tell if a stock is overpriced is to compare the price line to the
earnings line. If you bought familiar growth companies—such as Shoney’s, The
Limited, or Marriott—when the stock price fell well below the earnings line, and
sold them when the stock price rose dramatically above it, the chances are you’d
do pretty well. [It sure would have worked with Avon!] I’m not necessarily
advocating this practice, but I can think of worse strategies.)

 

☞ 비교하다, 라는 표현은 이렇게 씁니다. 

compare the price line to the earnings line.

 

☞ compare : to consider how things or people are similar and how they are different

compare something with/to something: 

Just compare the one that has been cleaned with the others.

The results are then compared to the results of previous studies.

compare and contrast (=show how things are similar and how they are different): 

The research aims to compare and contrast policies in British, American, and Japanese firms.

☞ 피터린치의 말을 보면서 어떤 생각이 드나요? 

 

네이버에 투자해야 할까요? 카카오에 투자해야 할까요? 네이버의 주가선과 이익선을 비교해보고, 카카오의 주가선과 이익선을 비교해 보면 됩니다.

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# THE FAMOUS P/E RATIO
Any serious discussion of earnings involves the price/earnings ratio—also
known as the p/e ratio, the price-earnings multiple, or simply, the multiple. This
ratio is a numerical shorthand for the relationship between the stock price and
the earnings of the company. The p/e ratio for each stock is listed in the daily
stock tables of most major newspapers, as shown here.

 

☞ shorthand : a quick way of writing that uses symbols to represent letters, words, or phrases, used especially when you write what someone is saying as they are talking

Will they teach you to take shorthand (=write using shorthand)?