Peter Lynch, who was a portfolio manager of Fidellity Magellan Fund, which was the best performing fund in the world unedr his leadership from May 1997 to May 1990. Mr Lynch is currently vice chairman of Fidelity Management & Research Company.
Here are some advice form Peter Lynch, on investing, particularly in stock market investment area:
1. Don’t overestimate the skill and wisdom of professionals.
2. Take advantage of what you already know.
3. Look for opportunities that haven’t yet being discovered and certified by Wall Sreet - companies that are “off the radar scope”
4. Invest in a house before you invest in a stock
5. Invest in companies, not in the stock market
6. Ignore short-term fluctuations
7. Large profits can be made in common stocks
8. Large losses can be made in commons stocks
9. Predicting the economy is futile
10. Predicting the short term direction of the stock market is futile
11. The long term-retuns from stocks are both relatively predictable and also far superior to the long term returns from bonds.
12. Keeping up with a company in which you own stocks is like playing and endless stud-poker hand.
13. Common stocks aren’t for everyone, nor even for all phases of a person’s life.
14. The average person is exposed to interesting local companies and products years before the professionals
15. Having an edge will help you make money in stocks
16. In the stock market, one in the hand is worth in the bush
(Peter Lynch & John Rothchild - One Up Wall Street)
One Comment
A nice list you have here, indeed Peter Lynch is the master of Portfolio Investing!