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.

Peter Lynch

Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.

Peter Lynch

more-money lost trying

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.

Peter Lynch

attractive bottom buying

The list of qualities (an investor should have) include patience, self-reliance, common sense, a tolerance for pain, open-mindedness, detachment, persistence, humility, flexibility, a willingness to do independent research, an equal willingness to admit mistakes, and the ability to ignore general panic.

Peter Lynch

pain humility mistake

The stock market really isn't a gamble, as long as you pick good companies that you think will do well, and not just because of the stock price.

Peter Lynch

good-company long thinking

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.

Peter Lynch

investing luck nine

You only need a few good stocks in your lifetime. I mean how many times do you need a stock to go up ten-fold to make a lot of money? Not a lot.

Peter Lynch

lifetime mean needs

Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets.

Peter Lynch

balance understanding loss

There is always something to worry about. Avoid weekend thinking and ignoring the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling.

Peter Lynch

weekend fall thinking

A price drop in a good stock is only a tragedy if you sell at that price and never buy more. To me, a price drop is an opportunity to load up on bargains from among your worst performers and your laggards that show promise. If you can't convince yourself "When I'm down 25 percent, I'm a buyer" and banish forever the fatal thought "When I'm down 25 percent, I'm a seller," then you'll never make a decent profit in stocks.

Peter Lynch

forever opportunity promise

It's human nature to keep doing something as long as it's pleasurable and you can succeed at it, which is why the world population continues to double every 40 years.

Peter Lynch

population long years

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 mutual funds altogether.

Peter Lynch

investing making-money panic

What makes stocks valuable in the long run isn't the market. It's the profitability of the shares in the companies you own. As corporate profits increase, corporations become more valuable and sooner or later, their shares will sell for a higher price.

Peter Lynch

investing running long

Know what you own, and know why you own it.

Peter Lynch

investing money intelligent

Everyone has the brain power to make money in stocks. Not everyone has the stomach.

Peter Lynch

investing-money making-money brain

Charts are great for predicting the past.

Peter Lynch

predicting past

The person that turns over the most rocks wins the game. And that's always been my philosophy.

Peter Lynch

winning success philosophy

During the Gold Rush, most would-be miners lost money, but people who sold them picks, shovels, tents and blue-jeans (Levi Strauss) made a nice profit.

Peter Lynch

jeans nice blue

Just because you buy a stock and it goes up does not mean you are right. Just because you buy a stock and it goes down does not mean you are wrong.

Peter Lynch

investing doe mean

The Rule of 72 is useful in determining how fast money will grow. Take the annual return from any investment, expressed as a percentage, and divide it into 72. The result is the number of years it will take to double your money.

Peter Lynch

return numbers years

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.

Peter Lynch

salary priorities firsts