Thread by @intellectualop

#learninpublic

In this thread I will be posting my quotes/insights/excerpts from the book "One up on The Wall Street" by Peter Lynch

As I read along. I will keep adding the Tweets to this thread.

Thread startes 👇

"The least important thing that you can track about a stock is stock price"

"The most important thing you can track about a stock is earnings"

"What the stock price does today, tomorrow or next week is only a distraction"

"An amateur investor can pick tomorrow's big winners by paying attention to new developments at the workplace, the mall, the auto showroom, the restaurants etc"

"You don't need to make money on every stock you pick. In my experience, 6 out of 10 winners in a portfolio can produce satisfying results."

"Stock news has gone from hard to find (in 1970s), then to easy to find (in late 1980s), the hard to get away with(post 1980s)"

"History tells us that market correction (fall of 10% or more) occurs every 2 years, and bear makets(decline of 20% or more) occurs every 6 years"

"When you're a long term investor, time is on your side"

"Bearish advice always sounds more intelligent"

"Market is up many folds since WW2, despite having severe crisis, different presidents, different geopolitical tensions such as cold war etc"

"When you sell in desperation you sell cheap"

"This is investing, where the dumb money isn't really dumb and smart money isn't really smart. Dumb money is only dumb when it listens to the smart money"

"Ultimately it is not the stock market nor even companies themselves that determines an investor's fate. It is the investor"

"As I look back, studying history and philosophy was much better preparation for stock market than, say, studying statistics"

"Investing in stock market is an art, not a science"

"I continuw to think like an amateur as frequently as possible"

By this Lynch means that an amateur investor has many advantages over the professional fund manager who is limited by many restrictions and biases and peer pressure as well.

"Historically, investing in stocks is undeniably more profitable than investing in debt"

"When you lend money to somebody, the best you can hope for is to get it back, plus interest"

"You'll never get a tenbaggers in a bond - unless you are a debt sleuth who specializes in bonds in default"

"Buy the right stock at the wrong price at the wromg time and you'll suffer great losses. Buy the wromg stocks at the right time and you'll suffer more of the same"

"Only invets that amount in stocks which you can afford to lose without that loss having any effect on your daily life in the foreseeable future"

"It's also imp to be able to make decisions without complete or perfect information. Things are almost never clear on Wall Street"

"When a neighbour tells me what to buy and then I wish I had taken his advice, it's a sure sign that the market has reached a top is due for a tumble"

"I don't believe in predicting markets. I believe in buying great companies - especially companies that are undervalued"

"Even in a good market, you meed to pick right stocks. If you are relying on the market to bail out your stocks, chances are, it won't"

"Pick the right stocks and the market will take care of itself"

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