You shouldn't just pick a stock - you should do your homework.
Peter LynchRead
When stocks are attractive, you buy them. Sure, they can go lower. I've bought stocks at $12 that went to $2, but then they later went to $30. You just don't know when you can find the bottom.
Interpretation
What this quote means
Investing in stocks can be risky, but patience can lead to significant gains despite initial losses.
Peter Lynch's quote encapsulates the unpredictable nature of the stock market, emphasizing that while one may encounter losses when purchasing stocks, the potential for higher returns later exists. It highlights the importance of a long-term perspective and the willingness to accept short-term volatility in pursuit of future gains.
Themes
StocksInvestmentMarketRiskReturnsPatience
In practice
Example use cases
This quote is perfect for an investment seminar to highlight the importance of patience in the stock market.
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
Whenever you hear a discussion about the short-term swings in any given stock's price, your immediate thought should be whether it matters to why you are investing.
Barry RitholtzRead
Investing is a virtuous habit best started as early as possible.
John C. BogleRead
You're looking for a mispriced gamble. That's what investing is. And you have to know enough to know whether the gamble is mispriced. That's value investing.
Charlie MungerRead
I'm a big believer in investing for the long term, and the decisions you make shouldn't be made if the economy is good or bad at a specific time.
Bob IgerRead
If you are predisposed to be patient, disciplined and psychologically appreciate the idea of buying bargains, then you're likely to be good at it. If you have a need for action, if you want to be involved in the new and exciting technological breakthroughs of our time, that's great, but you're not a value investor, and you shouldn't be one.
Seth KlarmanRead
The (stock) market is there only as a reference point to see if anybody is offering to do anything foolish. When we invest in stocks, we invest in businesses.
Warren BuffettRead