Investing in stocks is an art, not a science, and people who've been trained to rigidly quantify everything have a big disadvantage. Peter Lynch More Quotes by Peter Lynch More Quotes From Peter Lynch More money is lost anticipating the changes in the overall stock market than any other way of investing. Peter Lynch investinglostway The simpler it is, the better I like it. Peter Lynch investing There's lots of stocks out there and all you need is a few of 'em. That's been my philosophy. Peter Lynch philosophyideasneeds 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. Peter Lynch stormhurtopportunity 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. Peter Lynch investmentinvestingdecline The typical big winner in the Lynch portfolio generally takes three to ten years to play out. Peter Lynch typicalplayyears Hold no more stocks than you can remain informed on. Peter Lynch 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. Peter Lynch datadoenext-week 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. Peter Lynch investingfundamentalsdoe The biggest winners are surprises to me, and takeovers are even more surprising. It takes years, not months, to produce big results. Peter Lynch winnermonthsyears Absent a lot of surprises, stocks are relatively predictable over twenty years. As to whether they're going to be higher or lower in two to three years, you might as well flip a coin to decide. Peter Lynch twentiestwoyears Visiting stores and testing products is one of the critical elements of the analyst's job. Peter Lynch investingelementsjobs Long shots almost always miss the mark. Peter Lynch shotsmissinglong 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 Peter Lynch rateeconomyinterest 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. Peter Lynch best-effortdiversitythree Spend at least as much time researching a stock as you would choosing a refrigerator. Peter Lynch refrigeratorsinvestingfinance 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 investingrunninglong Well, I think the secret is if you have a lot of stocks, some will do mediocre, some will do okay, and if one of two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people. Peter Lynch twopeoplethinking The most important organ in the body as far as the stock market is concerned is the guts, not the head. Anyone can acquire the know-how for analyzing stocks. Peter Lynch analyzingbodyimportant The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share. Peter Lynch investingsimplestories
