Never invest in any idea you can't illustrate with a crayon
Peter LynchRead
You shouldn't just pick a stock - you should do your homework.
Interpretation
Thorough research is essential before making investment decisions.
This quote emphasizes the importance of conducting proper analysis and due diligence when selecting stocks for investment. It suggests that investing should not be a casual decision, but rather a well-informed action based on comprehensive knowledge of the companies and the market.
In practice
This quote is perfect for a seminar on investing where the importance of research will be discussed.
Never invest in any idea you can't illustrate with a crayon
The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share.
The junior high schools and high schools of America have forgotten to teach one of the most important courses of all. Investing.
All the math you need in the stock market you get in the fourth grade.
You can find good reasons to scuttle your equities in every morning paper and on every broadcast of the nightly news.
Just because you buy a stock and it goes up does not mean you are right. Just because you buy a stock and it goes down does not mean you are wrong.
There are all kinds of businesses that Charlie and I don't understand, but that doesn't cause us to stay up at night. It just means we go on to the next one, and that's what the individual investor should do.
It seems to me - particularly for these retirement-plan investors, the vast majority of whom are not particularly financially sophisticated - by far the best way is to invest in index funds.
As time goes on, I get more and more convinced that the right method of investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.
Growth and value investing are joined at the hip.
To be an investor you must be a believer in a better tomorrow.
Everyone has the idea of owning good companies. The problem is that they have high prices in relations to assets and earnings, and that takes all of the fun out of the game.
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