Investment Nuggets by Peter Lynch
Peter Lynch has for long been hailed as one of the most successful fund managers in America. He managed the Fidelity Magellan Fund between 1977 and 1990, consistently delivering high returns year after year. His investing success is attributable partly to his ability to identify companies early in their investing cycle. His two books, One up on Wall Street and Beating the Street are said to contain common sense advice that will appeal to any stock market enthusiast, be it a lay man or a veteran.
"The person that turns over the most rocks wins the game. And that's always been my philosophy."
"The very best way to make money in a market is in a small growth company that has been profitable for a couple of years and simply goes on growing."
"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."
"If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighbourhood shopping mall, and long before Wall Street discovers them."
"I think you have to learn that there is a company behind every stock, and that there is only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies."
"In this (investing) 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."
"I've found that when the market is 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'."
Additional Readings:
- Why invest in small companies? - Investors flock to smaller companies not just for cheap valuations but for earnings growth momentum and high return on equity
- Arbitrage your free lunch - There is opportunity in market mis-pricing of stocks
- Battle royale for Corus - Brazil's fourth largest steelmaker CSN's jump into the bidding war for the UK's Corus has upped the ante for Tata Steel. CSN's bid, valued at $8.4 billion, tops Tata Steel's by about four per cent.
- Rakesh Jhunjhunwala’s portfolio valued at Rs 1,341 cr - More than 33% of the stocks in portfolio have underperformed Sensex in last six months
Additional Reports
- Interview with Jim Rogers - Crisil Marketwire (CMW)
Parting Thought:
- The way you lose money in the market is to start off with an economic picture. - Peter Lynch
