Peter Lynch
Peter Lynch
Peter Lynchis an American businessman and stock investor. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently more than doubling the S&P 500 market index and making it the best performing mutual fund in the world. During his tenure, assets under management increased from $18 million to $14 billion. He also co-authored a number of books and papers on investing and coined a number of well known mantras...
NationalityAmerican
ProfessionEntrepreneur
Date of Birth19 January 1944
CountryUnited States of America
The S&P is up 343.8 percent for 10 years. That is a four-bagger. The general equity funds are up 283 percent. So it's getting worse, the deterioration by professionals is getting worse. The public would be better off in an index fund.
When people discover they are no good at baseball or hockey, they put away their bats and their skates and they take up amateur golf or stamp collecting or gardening. But when people discover they are no good at picking stocks, they are likely to continue to do it anyway.
I deal in facts, not forecasting the future. That's crystal ball stuff. That doesn't work.
Long-term investing has gotten so popular, it's easier to admit you're a crack addict than to admit you're a short-term investor.
My high-tech aversion caused me to make fun of the typical biotech enterprise: $100 million in cash from selling shares, one hundred Ph.D.'s, 99 microscopes, and zero revenues.
As I look back on it now, it's obvious that studying history and philosophy was much better preparation for the stock market than, say, studying statistics.
When you sell in desperation, you always sell cheap.
If you can follow only one bit of data, follow the earnings - assuming the company in question has earnings. I subscribe to the crusty notion that sooner or later earnings make or break an investment in equities. What the stock price does today, tomorrow, or next week is only a distraction.
Most investors would be better off in an index fund.
If you have the stomach for stocks, but neither the time nor the inclination to do the homework, invest in equity mutual funds.
When even the analysts are bored, it's time to start buying.
The typical big winner in the Lynch portfolio generally takes three to ten years to play out.
Nobody can predict interest rates, the future direction of the economy or the stock market. Dismiss all such forecasts and concentrate on what's actually happening to the companies in which you've invested
There's lots of stocks out there and all you need is a few of 'em. That's been my philosophy.