Authors: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

47 Quotes By Peter Lynch For Your Perfect Financial Planning

Famous As: Financier
Born On: January 19, 1944
Born In: United States of America
Age: 78 Years
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.
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Most investors would be better off in an index fund.

Most investors would be better off in an index fund.

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.

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.

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

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

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.

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.

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.

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.

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.

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.

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

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.

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.

Long shots almost always miss the mark.

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

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.

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

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.

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
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.

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
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.

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
I've always been a great lover of baseball.

I've always been a great lover of baseball.

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

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

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

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

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.

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.

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.'

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.

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.

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.

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.

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.

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.

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.

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

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

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.

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

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.

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

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

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
The old Wall Street adage

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.

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.

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.

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.

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.

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

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

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
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.

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.

Peter Lynch