Although it's easy to forget sometimes, a share is not a lottery ticket... it's part-ownership of a business.— Peter Lynch
The most colossal Peter Lynch quotes that are little-known but priceless
Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.
Never invest in any idea you can't illustrate with a crayon
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.
Everyone has the brain power to make money in stocks. Not everyone has the stomach.
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.
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.
Never invest in a company without understanding its finances.
The biggest losses in stocks come from companies with poor balance sheets.
Know what you own, and know why you own it.
It only takes a handful of big winners to make a lifetime of investing worthwhile.
If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes
I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
If you can't find any companies that you think are attractive, put your money in the bank until you discover some.
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.
I've always said, the key organ here isn't the brain, it's the stomach.
When things start to decline - there are bad headlines in the papers and on television - will you have the stomach for the market volatility and the broad-based pessimism that tends to come with it?
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.
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.
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.
I don't know anyone who said on their deathbed: 'Gee, I wish I'd spent more time at the office.'
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.
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.
Your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed.
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.
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 typical big winner in the Lynch portfolio generally takes three to ten years to play out.
Most investors would be better off in an index fund.
In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it.
Everyone has the brainpower to follow the stock market.
If you made it through fifth-grade math, you can do it.
An important key to investing is to remember that stocks are not lottery tickets.
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
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.
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.
Long shots almost always miss the mark.
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.
I talk to hundreds of companies a year and spend hour after hour in heady pow-wows with CEOs, financial analysts and my colleagues in the mutual-fund business, but I stumble onto the big winners in extracurricular situations, the same way you do.
The basic story remains simple and never-ending.
Stocks aren't lottery tickets. There's a company attached to every share.
The biggest winners are surprises to me, and takeovers are even more surprising.
It takes years, not months, to produce big results.
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.
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.
Bargains are the holy grail of the true stockpicker.
The fact that 10 to 30 percent of our net worth is lost in a market sell-off is of little consequence. We see the latest correction not as a disaster but as an opportunity to acquire more shares at low prices. This is how great fortunes are made over time.
Go for a business that any idiot can run - because sooner or later, any idiot probably is going to run it.
All the math you need in the stock market you get in the fourth grade.
The extravagance of any corporate office is directly proportional to management's reluctance to reward the shareholders.
If you have the stomach for stocks, but neither the time nor the inclination to do the homework, invest in equity mutual funds.
If you're lucky enough to have been rewarded in life to the degree that I have, there comes a point at which you have to decide whether to become a slave to your net worth by devoting the rest of your life to increasing it or to let what you've accumulated begin to serve you.
It would be wonderful if we could avoid the setbacks with timely exits, but nobody has figured out how to predict them.
I'm always fully invested. It's a great feeling to be caught with your pants up.
All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don't work out.
I deal in facts, not forecasting the future. That's crystal ball stuff. That doesn't work.
Owning stocks is like having children - don't get involved with more than you can handle.