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
We're not budgeting for it to do that. We think that it is possible that into our coffers you could probably push 8 or 10 million (euros) EBITDA ...but I think it's probably not the right thing to do in this period of consolidation.
People have been looking for recessions for the last five years,
I think Coca-Cola needs a rest. Some phases of the market, some of the big stocks are in that category.
The only thing that we're going to say is that our client has been arraigned. We've continued a not-guilty plea as we have all along. We intend to vigorously defend this case and we will see you at trial.
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?
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 have all this data and they go through it and make up their minds in four seconds, ... We're forcing people to do the wrong things. They look at what's hot. They spend so much time trying to figure out if the market is going up. That's so unimportant. It's about earnings. They need to follow the earnings.
It's absolute crap that people need to spend 60 hours a week analyzing companies, ... All you need are a few stocks to make money. If you find one stock a year, that's plenty. When I was running Magellan I had to find one a week but that was because I had billions of dollars. The average person needs only a few good stocks in a lifetime.
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.
There's lots of stocks out there and all you need is a few of 'em. That's been my philosophy.
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.
The typical big winner in the Lynch portfolio generally takes three to ten years to play out.
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 stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom.