Thread by @InvestiAnalyst

Peter Lynch

One of the greatest and most successful investors ever on Wall Street. He averaged +29% CAGR over a decade.

Today is a great day to review his Top 7 Pearls of Wisdom that made him great⬇️

(1/8) - Thread:🧵

1/ Market Timing:

✅When stocks are attractive, buy. I've bought stocks at $12 that went > $2, but later went > $30. You don't know when you can find the bottom.”

✅"Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections."

2/GN

✅During the Gold Rush, most would-be miners lost money, but people who sold them picks, shovels, tents, and blue-jeans made a nice profit.

✅Investing in stocks is an art, not a science, and people who've been trained to rigidly quantify everything have a big disadvantage

3/ On Simplicity:

✅"Go for a business that any idiot can run because sooner or later, any idiot probably is going to run it."

✅ "In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten."

4/ Growth & Learning:

✅The person who turns over the most rocks wins the game.

✅You want to be in a stock in the 2nd or 3rd inning of the ballgame, and get out in the seventh. That could be 30 years.

✅Every popular fast-growing company becomes a slow grower sooner or later

5/ On multi-baggers:

✅ The secret is if you have a lot of stocks,
- some will do okay>
- some will do mediocre >
- And if one or two of them go up big time, you produce a fabulous results >>>

The typical big winner in the Lynch portfolio generally took 3-10 years to pan out!

6/ On buying:

✅Invest in what you know & see around

✅Ensure the long-term growth rate is greater >> P/E Ratio paid!

✅Any business that manages to keep a 20% growth rate for 20 years will reward shareholders with a massive return, even if the stock market overall is lower

7/ Finally, on Volatility (resonates):

✅"Everyone has the brainpower to make money in stocks. Not everyone has the stomach"

✅/ "In dieting and in stocks, it is the gut and not the head that determines the results."

8/8 - End

Peter Lynch was one of the greatest Investors and one of my role models.

Highly recommend watching his interview or his books. His wisdom on #5 Multi-baggers; #7 on Volatility and #6 on buying rules connected the most

Let me know which one resonated. Happy Friday!