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
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
Growth and value investing are joined at the hip.
Warren BuffettRead
When an investor focuses on short-term investments, he or she is observing the variability of the portfolio, not the returns - in short, being fooled by randomness.
Nassim Nicholas TalebRead
Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn't count. If you are right about a business whose value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables.
Warren BuffettRead
Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.
Warren BuffettRead
When it comes to portfolios, my personal advice is for anyone who can, put money into forestry or farmland. Long term, you would probably never come near their returns in the stock market. In the world that I see, land is golden.
Jeremy GranthamRead
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