Peter Lynch Quotes
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.
The key to making money in stocks is not to get scared out of them.
If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.
In stocks as in romance, ease of divorce is not a sound basis for commitment.
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.
Stock picking can't be reduced to a simple formula or a recipe that guarantees success if strictly adhered to.
A person infatuated with measurement, who has his head stuck in the sand of the balance sheets, is not likely to succeed.
This is the context.
In business, competition is never as healthy as total domination.
Investing is fun, exciting, and dangerous if you don't do any work.
Your investor's edge is not something you get from Wall Street experts. It's something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.
Behind every stock is a company. Find out what it's doing.
Often, there is no correlation between the success of a company's operations and the success of its stock over a few months or even a few years. In the long term, there is a 100 percent correlation between the success of the company and the success of its stock. This disparity is the key to making money; it pays to be patient, and to own successful companies.
You have to know what you own, and why you own it. "This baby is a cinch to go up!" doesn't count.
This is the context.
Owning stocks is like having children - don't get involved with more than you can handle.
If you can't find any companies that you think are attractive, put your money in the bank until you discover some.
A stock market decline is as routine as a January blizzard in Colorado. If you're prepared, it can't hurt you. A decline is a great opportunity to pick up the bargains left behind by investors who are fleeing the storm in panic.
Everyone has the brainpower to make money in stocks. Not everyone has the stomach. If you are susceptible to selling everything in a panic, you ought to avoid stocks and stock mutual funds altogether.
There is 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.
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.
Time is on your side when you own shares of superior companies.
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. In the long run, a portfolio of poorly chosen stocks won't outperform the money left under the mattress.
Never invest in any idea you can't illustrate with a crayon.
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