You shouldn't just pick a stock - you should do your homework.
Peter LynchRead
If you hope to have more money tomorrow than you have today, you've got to put a chunk of your assets into stocks. Sooner or later, a portfolio of stocks or stock mutual funds will turn out to be a lot more valuable than a portfolio of bonds or CDs or money-market funds.
Interpretation
What this quote means
Investing in stocks is essential for growing wealth over time.
This quote emphasizes the importance of investing in stocks to accumulate wealth. Peter Lynch argues that if one desires to have more financial resources in the future, a part of their assets should be allocated to stocks, as they historically offer higher returns compared to more conservative investment options like bonds or money-market funds.
Themes
InvestmentStocksWealthFinancePortfolio
In practice
Example use cases
In a finance seminar discussing asset allocation strategies.
More from Peter Lynch
All quotes →Never invest in any idea you can't illustrate with a crayon
Peter LynchRead
The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share.
Peter LynchRead
The junior high schools and high schools of America have forgotten to teach one of the most important courses of all. Investing.
Peter LynchRead
All the math you need in the stock market you get in the fourth grade.
Peter LynchRead
You can find good reasons to scuttle your equities in every morning paper and on every broadcast of the nightly news.
Peter LynchRead
Similar quotes
Most women file for bankruptcy in the aftermath of a serious medical problem, a job loss, or a family break up. It is hard to protect against those.
Elizabeth WarrenRead
Never pay the slightest attention to what a company president ever says about his stock.
Bernard BaruchRead
Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.
Warren BuffettRead
Outperforming the market with low volatility on a consistent basis is an impossibility. I outperformed the market for 30-odd years, but not with low volatility.
George SorosRead
But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
Alan GreenspanRead
Entrepreneurs or international conglomerateurs, or large financial institutions buy or create mutual fund management companies to create a return on their own capital. It's capitalism at work, where the rewards tend to go to the managers rather than the investors.
John C. BogleRead