#074 13 Incredible Lessons From Peter Lynch
13 Incredible Lessons From Peter Lynch
1. 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.
2. When you sell in desperation, you always sell cheap.
3. The key to making money in stocks is not to get scared out of them.
4. 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.
5. My idea of a great business is one that has a shortage of competitors.
6. You can outperform the experts if you use your edge by investing in companies or industries you already understand.
7. Go for a business that any idiot can run – because sooner or later any idiot probably is going to be running it.
8. Remember, things are never clear until it’s too late.
9. There’s no such thing as a worry-free investment. The trick is to separate the valid worries from the idle worries, and then check the worries against the facts.
10. 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.
11. Owning stocks is like having children – don’t get involved with more than you can handle.
12. If you can’t find any companies that you think are attractive, put your money in the bank until you discover some.
13. Buy only what you understand, believe in, and intend to stick with – even when others are chasing the next miracle.
If you liked these lessons you will surely love his Books
Thanks for reading.
Dhaval.
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