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A collection of quotes and thoughts by Peter Lynch on financial, advice, planning, investment, inspirational, philosophy, business, future, money and game.

47 Quotes By Peter Lynch For Your Perfect Financial Planning

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Financier

Born On
19 January 1944 AD

Born In
United States of America

Age
73

Peter Lynch is a distinguished American mutual fund manager, investor and philanthropist. His performance record has earned him the status of a ‘legend’ by financial media. He joined as an intern at the ‘Fidelity Investment’ wherein he initially published papers. He has been a co-authored and authored a number of papers and books on investing. ‘Invest in what you know’ and ‘ten bagger’ are few of the well-known financial planning mantras which have been coined by him. It is said that Lynch got most of his ideas while walking through the grocery shop along with his friends. Few of his notable books include, ‘Lear to Earn’, ‘Beating the street’ and ‘One Up on Wall Street’ amongst others. He also used to write a column for the magazine, ‘Worth’. Peter’s words, thoughts, strategies and views on money making, investing and stock market would leave you thinking. We have accumulated few of his words below from his work and life. Following is a collection of pearls of wisdom in form of quotes and sayings by one of the greatest investing minds, Peter Lynch.

Absent a lot of surprises, stocks are relatively predictable over twenty years. As to whether they're going to be higher or lower in two to three years, you might as well flip a coin to decide.

- Peter Lynch

The extravagance of any corporate office is directly proportional to management's reluctance to reward the shareholders.

- Peter Lynch

Most investors would be better off in an index fund.

- Peter Lynch

In stocks as in romance, ease of divorce is not a sound basis for commitment.

- Peter Lynch

The typical big winner in the Lynch portfolio generally takes three to ten years to play out.

- Peter Lynch

Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets.

- Peter Lynch

The biggest winners are surprises to me, and takeovers are even more surprising. It takes years, not months, to produce big results.

- Peter Lynch

All the time and effort people devote to picking the right fund, the hot hand, the great manager have, in most cases, led to no advantage.

- Peter Lynch

I'm always fully invested. It's a great feeling to be caught with your pants up.

- Peter Lynch

You only need a few good stocks in your lifetime. I mean how many times do you need a stock to go up ten-fold to make a lot of money? Not a lot.

- Peter Lynch

Nobody can predict interest rates, the future direction of the economy or the stock market. Dismiss all such forecasts and concentrate on what's actually happening to the companies in which you've invested

- Peter Lynch

Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.

- Peter Lynch

Long shots almost always miss the mark.

- Peter Lynch

You have to keep your priorities straight if you plan to do well in stocks.

- Peter Lynch

Everyone has the brain power to make money in stocks. Not everyone has the stomach.

- Peter Lynch

In the summer of 1990, I was buying stocks and I was probably three or four months early there. But we had a great rally in 1991.

- Peter Lynch

I've always been a great lover of baseball.

- Peter Lynch

Improved turnout will give parliament and government the appearance of being more legitimate.

- Peter Lynch

Well, I think the secret is if you have a lot of stocks, some will do mediocre, some will do okay, and if one of two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people.

- Peter Lynch

I don't go near the money and the money doesn't go near me.

- Peter Lynch

But my system for over 30 years has been this: 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.

- Peter Lynch

It's human nature to keep doing something as long as it's pleasurable and you can succeed at it - which is why the world population continues to double every 40 years.

- Peter Lynch

I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy.

- Peter Lynch

I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy.'

- Peter Lynch

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.

- Peter Lynch

If you go to Minnesota in January, you should know that it's gonna be cold. You don't panic when the thermometer falls below zero.

- Peter Lynch

The real key to making money in stocks is not to get scared out of them.

- Peter Lynch

Suicide is a permanent solution to a temporary problem. Suicide is a choice and I think if we work with that with kids, we'll get somewhere.

- Peter Lynch

If all the economists in the world were laid end to end, it wouldn't be a bad thing.

- Peter Lynch

Don't bottom fish.

- Peter Lynch

I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.

- Peter Lynch

You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets.

- Peter Lynch

Although it's easy to forget sometimes, a share is not a lottery ticket... it's part-ownership of a business.

- Peter Lynch

The person that turns over the most rocks wins the game. And that's always been my philosophy.

- Peter Lynch

Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.

- Peter Lynch

Whenever you invest in any company, you’re looking for its market cap to rise. This can’t happen unless buyers are paying higher prices for the shares, making your investment more valuable.

- One Up On Wall Street: How To Use What You Already Know To Make Money In, Peter Lynch

The old Wall Street adage "never invest in anything that eats or needs repairs" may apply to racehorses, but it's malarkey when it comes to houses.

- One Up On Wall Street: How To Use What You Already Know To Make Money In The Market, Peter Lynch

The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.

- One Up On Wall Street: How To Use What You Already Know To Make Money In, Peter Lynch

People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.

- One Up On Wall Street: How To Use What You Already Know To Make Money In, Peter Lynch

Go for a business that any idiot can run – because sooner or later any idiot probably is going to be running it.

- Peter Lynch

So while I was in college I did a little study on the freight industry, the air freight industry. And I looked at this company called Flying Tiger. And I actually put a thousand dollars in it and I remember I thought this air cargo was going to be a thing of the future.

- Peter Lynch

A stock market decline is as routine as a January blizzard in Colorado. If you're prepared, it can't hurt you. A decline is a great opportunity to pick up the bargains left behind by investors who are fleeing the storm in panic.

- Peter Lynch

A price drop in a good stock is only a tragedy if you sell at that price and never buy more. To me, a price drop is an opportunity to load up on bargains from among your worst performers and your laggards that show promise. If you can't convince yourself 'When I'm down 25 percent, I'm a buyer' and banish forever the fatal thought 'When I'm down 25 percent, I'm a seller,' then you'll never make a decent profit in stocks.

- Peter Lynch

In the long run, a portfolio of well chosen stocks and/or equity mutual funds will always outperform a portfolio of bonds or a money-market account. In the long run, a portfolio of poorly chosen stocks won't outperform the money left under the mattress.

- Peter Lynch

If you can follow only one bit of data, follow the earnings - assuming the company in question has earnings. I subscribe to the crusty notion that sooner or later earnings make or break an investment in equities. What the stock price does today, tomorrow, or next week is only a distraction.

- Peter Lynch

If you're lucky enough to have been rewarded in life to the degree that I have, there comes a point at which you have to decide whether to become a slave to your net worth by devoting the rest of your life to increasing it or to let what you've accumulated begin to serve you.

- Peter Lynch

Logic is the subject that has helped me most in picking stocks, if only because it taught me to identify the peculiar illogic of Wall Street. Actually Wall Street thinks just as the Greeks did. The early Greeks used to sit around for days and debate how many teeth a horse has. They thought they could figure it out just by sitting there, instead of checking the horse. A lot of investors sit around and debate whether a stock is going up, as if the financial muse will give them the answer, instead of checking the company.

- Peter Lynch