You shouldn't just pick a stock - you should do your homework.
Peter LynchRead
Time is on your side when you own shares of superior companies.
Interpretation
What this quote means
Investing in high-quality companies can lead to long-term financial growth and security.
Peter Lynch emphasizes the advantage of holding investments in strong, well-managed companies over time. When investors own shares of superior companies, they benefit from the potential for their value to increase, as time allows these companies to grow and prosper, ultimately leading to greater returns on their investments.
Themes
InvestingTimeStocksCompaniesWealth
In practice
Example use cases
During a financial seminar, you can quote this saying to illustrate the value of long-term investing.
More from Peter Lynch
All quotes βNever invest in any idea you can't illustrate with a crayon
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The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share.
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The junior high schools and high schools of America have forgotten to teach one of the most important courses of all. Investing.
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All the math you need in the stock market you get in the fourth grade.
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You can find good reasons to scuttle your equities in every morning paper and on every broadcast of the nightly news.
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The strategy we've adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it.
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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.
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My favorite time frame for holding a stock is forever.
Warren BuffettRead