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
Peter Lynch quotes about
I spend about 15 minutes a year on economic analysis. The way you lose money in the stock market is to start off with an economic picture. I also spend 15 minutes a year on where the stock market is going.
People were writing off California a couple of years ago, now they have a massive surplus. Canada is running its first surplus in 20 years and Mexico is doing well. Wouldn't you have been shocked if someone told you that the U.S. would have been running a surplus?
My method for picking stocks has never changed. When businesses go from crappy to semicrappy, there's money to be made.
When management owns stock, then rewarding the shareholders becomes a first priority, whereas when management simply collects a paycheck, then increasing salaries becomes a first priority.
The real key to making money in stocks is not to get scared out of them.
There are substantial rewards for adopting a regular routine of investing and following it no matter what, and additional rewards for buying more shares when most investors are scared into selling.
You have to let the big ones make up for your mistakes.
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.
Know what you own, and know why you own it.
Everyone has the brain power to make money in stocks. Not everyone has the stomach.
People who want to know how stocks fared on any given day ask, "Where did the Dow close?" I'm more interested in how many stocks went up versus how many went down. These so-called advance/decline numbers paint a more realistic picture.
There's no shame in losing money on a stock. Everybody does it. What is shameful is to hold on to a stock, or worse, to buy more of it when the fundamentals are deteriorating.
All the math you need in the stock market you get in the fourth grade.
There's no use diversifying into unknown companies just for the sake of diversity. A foolish diversity is the hobgoblin of small investors. That said, it isn't safe to own just one stock, because in spite of your best efforts, the one you choose might be the victim of unforeseen circumstances. In small portfolios, I'd be comfortable owning between three and ten stocks.