Peter Lynch’s advice: “If you have a lot of shares, some of them will do the average, while others will do so well,” if it increases for two or two, then you are producing a wonderful result. “
The famous investor Peter Lynch Once open to its early experiences in the stock market, its initial investment, and the philosophy that directed his successful investment career.
What happenedLynch, who is famous for his successful time in the Magilian Videliti Fund, follows his interest in the stock market to his childhood in the fifties. His curiosity was confused while working as a box in a golf club in West Newton, where he often heard the executives of the companies discussing stocks.
While studying at Boston College on the Caddy scholarship, Lynch has investigated his first in Flying Tiger, an air freight company.
He is convinced of the future of air cargo, investing $ 1,000. The value of the stock increased during the Vietnam War, as the company was involved in the transportation of the forces, which gave Linch the first “ten Bagger” – a period that was formulated for a share that re -investigates the investment.
Lynch investment philosophy emphasizes the importance of leaving successful stocks. He believes that a few “ten bags” can compensate for medium or bad stocks in the investor portfolio. “You have to let the adults make up for your mistakes.”
Also read: Note the market of the Peter Lynch: “I have lost money by investors who are preparing for corrections, more than the loss of corrections themselves.”
“The secret is that if you have a lot of stocks, some will do the average, and some will do well, and if one of them climbs a great time, you are producing a great result. I think this is the promise of some people. Some stocks rise 20-30 percent, and they get rid of it, and they wander around the victory. Lynch said during an interview:” One winner, you mainly see some of the stocks in your life, and this is all that you need. ”
Despite the loss of many shares that exceeded ten times during his term in Magellan, Lynch’s approach has proven his success. He repeated that when investing, he is considered to be right six times out of ten times well, and stressed the importance of bearing calculated risks.
Why do it matterLynch’s journey from the box to a famous investor is the importance of curiosity, calculated risks, and patience in successful investment.
Its philosophy of leaving the successful shares of running and allowing “ten bags” to compensate for less successful investments, provides valuable visions for both novice investors and experience.
His story is a reminder that success in investment does not always come from being right all the time, but that he is right in enough times and leaves those successes that work.
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Peter Lynch’s advice: “If you cannot explain a 11 -year -old child in two minutes or less why you have stocks, you will not own it.”
Photo: Shutterstock/Avm photos
