You shouldn't just pick a stock - you should do your homework.
Peter LynchRead
People who want to know how stocks fared on any given day ask, "Where did the Dow close?" I'm more interested in how many stocks went up versus how many went down. These so-called advance/decline numbers paint a more realistic picture.
Interpretation
What this quote means
The quote emphasizes the importance of broader market indicators rather than just focusing on a single index's performance.
Peter Lynch highlights the significance of looking beyond the Dow Jones Industrial Average to understand the overall market trends. By focusing on the advance/decline numbers, he suggests investors can gain a clearer and more comprehensive picture of market health and direction, rather than relying solely on a snapshot provided by one index.
Themes
StocksMarketInvestingPerformanceIndicators
In practice
Example use cases
In a finance class discussion on stock market analysis.
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
In other words, the percentage change in book value in any given year is likely to be reasonably close to that year's change in intrinsic value.
Warren BuffettRead
The securitisation of mortgages added a new dimension of systemic risk. Financial engineers claimed they were reducing risks through geographic diversification: in fact they were increasing them by creating an agency problem. The agents were more interested in maximising fee income than in protecting the interests of bondholders. That is the verity that was ignored by regulators and market participants alike.
George SorosRead
A single agency responsible for systemic risk would be accountable in a way that no regulator was in the run-up to the 2008 crisis. With access to all necessary information to monitor the markets, this regulator would have a better chance of identifying and limiting the impact of future speculative bubbles.
Henry PaulsonRead
The Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their shareholders.
John C. BogleRead
Any man who is a bear on the future of this country will go broke.
J. P. MorganRead
At long as a stock is acting right, and the market is right, do not be in a hurry to take profits. One should never permit speculative ventures to run into investments.
Jesse Lauriston LivermoreRead