Peter Lynch: Investing Wisdom in One Speech

Peter Lynch is an American investor, mutual fund manager, and philanthropist. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently more than double the S&P 500 stock market index and making it the best-performing mutual fund in the world. During his 13-year tenure, assets under management increased from USD 18 million to USD 14 billion. In this video, he shares his investing wisdom in one speech:

  • Individuals can make money in investing and should not be intimidated by institutions as they operate with constraints and someone without those constraints can take benefit

  • The single most important thing in the market is to know what you own

  • You should be able to explain to 10 year old in 2 mins or less – that’s why SocInvest focuses on simply easy to understand analysis

  • Knowledge is the edge that can help generate returns

  • Investors put the material amount of money without researching on tips received on YouTube, Telegram, Twitter, or other social media channels. But same investors will do a lot of research to buy a small electronic items

  • Focus on micro (rather than macro) – how stock earnings will rise and fall; its direct indicators

  • Compounding works slowly at the start – we need to be patient and not in a hurry to make a quick buck!

  • Don’t get too attached to a stock… “Stock does not know that you own it”

  • There is always something to worry about in investing – a key organ in your body is the stomach and not your brain

 



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