You shouldn't just pick a stock - you should do your homework.
Peter LynchRead
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.
Interpretation
What this quote means
Investing in stocks can be risky, but patience can lead to significant gains despite initial losses.
Peter Lynch's quote encapsulates the unpredictable nature of the stock market, emphasizing that while one may encounter losses when purchasing stocks, the potential for higher returns later exists. It highlights the importance of a long-term perspective and the willingness to accept short-term volatility in pursuit of future gains.
Themes
StocksInvestmentMarketRiskReturnsPatience
In practice
Example use cases
This quote is perfect for an investment seminar to highlight the importance of patience in the stock market.
More from Peter Lynch
All quotes →Never invest in any idea you can't illustrate with a crayon
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The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share.
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The junior high schools and high schools of America have forgotten to teach one of the most important courses of all. Investing.
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All the math you need in the stock market you get in the fourth grade.
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You can find good reasons to scuttle your equities in every morning paper and on every broadcast of the nightly news.
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As time goes on, I get more and more convinced that the right method of investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.
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