21 Best Peter Lynch Quotes on Investing

INVESTOPAPER

Peter Lynch, often referred as the mutual fund wizard by the investment community, is one of the most successful investors of all time. He was the fund manager of the Magellan Fund under Fidelity Investments, from the period between 1977 to 1990. In this 13 years of his tenure, Lynch generated an average annual return of 29.20 percent. This means that if you had handed Peter Lynch your money, it would have increased by almost 2700% in a period of 13 years.

When Lynch started as the fund manager of Magellan fund in 1977, he has $18 million assets under management. By the time he retired in 1990, assets under management increased to $14 billion. He is one of the very few fund managers who achieved such phenomenal return for long period of time (13 years).

Here we have compiled the 21 best investing quotes by the legendary Peter Lynch.

Best Peter Lynch Quotes

1. “If you invest $1,000 in a stock, all you can lose is $1,000, but you stand to gain $10,000 or even $50,000 over time if you’re patient.”

2. “Bargains are the holy grail of the true stock picker. 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.”

3. “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.”

4. “The key to making money in stocks is not to get scared out of them.”

5. “People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.”

6. “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.”

7. “Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves.”

8. “In the business of investing, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.”

9. “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.”

10. “I’ve found that when the market’s going down and you buy funds wisely, at some point in the future you will be happy. You won’t get there by reading ‘Now is the time to buy.’ “

11. “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.”

12. “Owning stocks is like having children. Don’t get involved with more than you can handle.”

13. “The devoted stock picker is happier when the market drops 300 points than when it rises the same amount.”

14. “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.”

15. “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.”

16. “But my system for over 30 years has been this: 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.”

17. “In the end, superior companies will succeed and mediocre companies will fail, and investors in each will be rewarded accordingly.”

18. “Time is on your side when you own shares of superior companies.”

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

20. “Know what you own, and know why you own it.”

21. “The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.”

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