My 25 favorite sources of wisdom from Peter Lynch
1. Go for a business that any idiot can run – because sooner or later, any idiot probably is going to run it.
2. The stock market is filled with individuals who know the price of everything, but the value of nothing.
1. Go for a business that any idiot can run – because sooner or later, any idiot probably is going to run it.
2. The stock market is filled with individuals who know the price of everything, but the value of nothing.
3. In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten.
4. The key to making money in stocks is not to get scared out of them.
4. The key to making money in stocks is not to get scared out of them.
5. Behind every stock is a company. Find out what it’s doing.
6. In the short run, the market is a voting machine, but in the long run, it is a weighing machine.
6. In the short run, the market is a voting machine, but in the long run, it is a weighing machine.
7. You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets.
8. Know what you own, and know why you own it.
8. Know what you own, and know why you own it.
9. Although it's easy to forget sometimes, a share is not a lottery ticket... it's part ownership of a business.
10. The best investment you can make is in yourself.
10. The best investment you can make is in yourself.
11. The person that turns over the most rocks wins the game.
12. The more you learn about the stock market, the better investor you will become.
12. The more you learn about the stock market, the better investor you will become.
13. There's always something to worry about. Avoid weekend thinking and ignore the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling.
14. In the long run, a portfolio of well-chosen stocks and/or equity mutual funds will always outperform a portfolio of bonds or a money-market account.
15. The extravagance of any corporate office is directly proportional to management’s reluctance to reward the shareholders.
15. The extravagance of any corporate office is directly proportional to management’s reluctance to reward the shareholders.
16. The stock market is a device for transferring money from the impatient to the patient.
17. If you don't study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
17. If you don't study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
18. Time is on your side when you own shares of superior companies.
19. Stocks are not lottery tickets. There's a company attached to every share.
19. Stocks are not lottery tickets. There's a company attached to every share.
20. The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.
21. People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences.
21. People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences.
22. The great long-term winners are companies that take the same path as your grandfather: What they make goes up in value over the years.
23. If you can follow only one bit of data, follow the earnings – assuming the company in question has earnings. Eventually, earnings will set the stock price.
24. The four most dangerous words in investing are: 'This time it's different.
25. I've always said if you spend 13 minutes a year on economics, you've wasted 10 minutes.
25. I've always said if you spend 13 minutes a year on economics, you've wasted 10 minutes.
That's it for today.
If you liked this, you'll LOVE this PDF which shares the entire investment philosophy of Peter Lynch.
You can grab it here: compounding-quality.ck.page
If you liked this, you'll LOVE this PDF which shares the entire investment philosophy of Peter Lynch.
You can grab it here: compounding-quality.ck.page
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