7 Rules Of Investing That I Learned From Peter Lynch

~Thread~ Image
1. Know what you own

- If you own a stock that you don't understand then you're have no right to own it.

- You should be able to explain why you own a particular stock in less than 2 minutes to a 10 year old.

- Don't own the stock just because the sucker is going up.
2. Don't invest purely on others opinions

- Never buy a stock just because someone suggested you that this stock will go up.

- Do your own research.

- Even when you buy a phone, you always do your research then why aren't you doing it while investing in stocks.
3. Focus on the company behind the stock

- The price of a stock is directly related to the performance of the company behind it.

- If the company is doing good, the stock will go up.

- If the company is doing bad, the stock will go down.

- Stocks are not lottery tickets.
4. Don't try to predict the market

- No one can predict the stock market.

- If you spend 14 minutes a year in economics and predicting the market, you have wasted 12 minutes.

- Instead of predicting the economy, start doing industry analysis.
Ex: If the company you own is in steel business,

- Learn about the steel prices
- Look at the scrap prices
- Look at steel demand all over the World
5. Market Crashes are great opportunities

- About once every 2 years, market falls by 10%.

Ex: If you liked a stock at $100 and it falls by 30% then you should buy it.

- You are getting the same stock you liked at 30% discount.
6. You have plenty of time

- As soon as people hear some tip about a stock they rapidly run to dump their life's saving in that stock.

- Be smart, and do your research first.
- Before investing your money in some stock blindly, research the company first and learn the fundamentals of the company.

- There should be no rush in buying the stocks.
7. You need an edge to make money

- Suppose, you work in a pharmaceutical company.

- Recently, they launched a new drug that just took off.

- Now, you know the drug is effective and it's making a lot of money to the company.
- So, instead of buying the companies you don't understand, buy the stocks of company you work in.

- You have an edge over big institutions because you know the drug is doing good and company is doing good too.
If you liked this thread then please follow (@smartmoneymania ) &

RT the first tweet 👊🏻.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with SmartMoneyMania | Personal Finance

SmartMoneyMania | Personal Finance Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @smartmoneymania

2 Nov
Top 15 Books That You Should Read Atleast Once In Your Life📚

Categories:

i) Finance
ii) Productivity
iii) Mindset
i) Finance Books:

- The Psychology Of Money
- I Will Teach You To Be Rich
- The Richest Man In Babylon
- Your Money Or Your Life
- Broke Millennial
ii) Productivity Books:

- Atomic Habits
- The 4-Hour Workweek
- The Power Of Habit
- Eat That Frog
- The Miracle Morning
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(