Peter Lynch, the world most successful fund manager has shared his thought and style of investing in his book ONE UP ON WALL STREET which became one of the best selling books of all time on investing and sold millions of copies all over the world. Following are some of the key thoughts extracted from his book.
- Although it's easy to forget sometimes, a share is not a lottery ticket... it's part-ownership of a business.
- Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.
- Go for a business that any idiot can run - because sooner or later, any idiot probably is going to run it.
- 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.
- 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.'
- If all the economists in the world were laid end to end, it wouldn't be a bad thing.
- It's human nature to keep doing something as long as it's pleasurable and you can succeed at it - which is why the world population continues to double every 40 years.
- 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.
- 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.