Peter Lynch shares tips: “There is no defect in losing money on stocks, what is shameful is to stick to the arrow when the basics deteriorate.”

A respectable American financier Peter Lynch Transfer some of the main investment wisdom, which confirms the importance of patience, the basic account, and the intense concentration on the basics of the company.

What happened: In one of his books, One in Wall StreetHe highlighted some of the most investment and adult ideas.

Lynch, who has achieved an impressive annual return of 29.2 % during his period in the Fidelity Magellan Fund, stressed the decisive role of patience in investment. He said in the book, “If you invested $ 1,000 in stocks, all you can lose is $ 1,000, but you will get $ 10,000 or even $ 50,000 over time if you are patient.”

Contrary to the wide -ranging belief, Lynch has argued that the basic mathematical skills are all the same needs for successful investment. He stated, “All the mathematics you need in the stock market you get in the fourth grade.” He stressed the importance of understanding the company’s basics instead of relying on complex sports analysis.

Also read: Better Lynch’s money -making advice: “When things move from terrible to semi -drawn to OK, you can earn a lot of money.”

Lynch also encouraged investors to focus on the companies themselves, instead of stocks. He said that the aspects such as the company’s products, growth capabilities, competitive advantages, and financial health are more indicating their long -term performance than short -term market fluctuations.

Lynch of investors reminded that the losses are an inevitable part of investing and that there is no shame in losing money on stocks. He stressed the importance of focusing on the basics of the company and industry expectations on performance in the short term.

He wrote in the book: “There is no defect in losing money on shares. Everyone does it. What is shameful is to stick to the arrow, or what is worse, to buy more of them when the basics deteriorate.”

Why do it matterLynch visions are a timely reminder for investors, especially those in their 1960s, to focus on the long -term capabilities of their investments. It provides its focus on patience, basic mathematics, and the company’s basics on complex analysis and short -term market transformations a valuable perspective in the volatile market environment today.

His advice can help investors make more enlightened decisions, reduce losses, and increase returns to the maximum.

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Teacher Peter Lynch’s investment: “If you cannot explain a 11 -year -old child in two minutes or less why you have stocks, you will not own it.”