You shouldn't just pick a stock - you should do your homework.
Peter LynchRead
You should not buy a stock because it's cheap but because you know a lot about it.
Interpretation
What this quote means
Investing should be based on knowledge rather than price alone.
This quote by Peter Lynch emphasizes the importance of understanding and knowledge in making investment decisions. Rather than being swayed by the price of a stock, it is crucial to have a deep understanding of the company, its operations, and market conditions to make informed and successful investment choices.
Themes
InvestingKnowledgeStocksValueWisdom
In practice
Example use cases
During a presentation on investment strategies, one might say, 'As Peter Lynch wisely noted, you should not buy a stock because it's cheap but because you know a lot about it.'
More from Peter Lynch
All quotes βNever 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
As I bent over the washboard and looked at my arms buried in soapsuds, I said to myself, 'What are you going to do when you grow old and your back gets stiff?' This set me to thinking, but with all my thinking I couldn't see how a poor washerwoman was going to better my condition.
Madam C. J. WalkerRead
See to it that each hour's feelings, and thoughts, and actions are pure and true; then will your life be such.
Henry Ward BeecherRead
The men who really believe in themselves are all in lunatic asylums.
Gilbert K. ChestertonRead
With integrity, you have nothing to fear, since you have nothing to hide. With integrity, you will do the right thing, so you will have no guilt.
Zig ZiglarRead
I believe the reason we sleep is not just to allow our body to rest but that it is to allow this inner wisdom to speak to us through symbols. This includes the body or somatic problems as well as psychological ones. Dreams and drawings are useful in diagnosing physical conditions.
Bernie SiegelRead
A great man does not seek applause or place; he seeks for truth; he seeks the road to happiness, and what he ascertains, he gives to others.
Robert Green IngersollRead