You shouldn't just pick a stock - you should do your homework.
Peter LynchRead
Although it's easy to forget sometimes, a share is not a lottery ticket... it's part-ownership of a business.
Interpretation
What this quote means
A share represents ownership in a company, not a chance to win or lose like a lottery.
In this quote, Peter Lynch emphasizes the importance of understanding the true nature of owning shares in a company. He draws a clear distinction between investing in stocks as a form of ownership in a business, which implies taking an interest in its success and operations, versus viewing it as a gamble akin to purchasing a lottery ticket. This perspective encourages investors to take a more informed and responsible approach to their investments.
Themes
SharesInvestingBusinessOwnershipFinance
In practice
Example use cases
Using this quote during a financial literacy workshop.
More from Peter Lynch
All quotes βNever invest in any idea you can't illustrate with a crayon
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The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share.
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The junior high schools and high schools of America have forgotten to teach one of the most important courses of all. Investing.
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All the math you need in the stock market you get in the fourth grade.
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You can find good reasons to scuttle your equities in every morning paper and on every broadcast of the nightly news.
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