Peter Lynch was once inheriting him “cautiously” when they buy a refrigerator, but they would “fall thousands” on the tip of the arrows they heard in a bus – NVIDIA (NASDAQ: NVDA)
The legend of investment Peter Lynch Investors have warned that “the lollipop is not a good reason” to buy shares, as they prepared traders chasing high models without understanding the companies behind them.
What happened: Lynch’s warning, which came in CNBC rare interviewCarrying weight. He directed the MAGELLAN Fund in Federation to an annual return of 29.2 % from 1977 to 1990, which led to its narrowness more than the S&P 500 and turned 20 million dollars to 14 billion dollars. Boston’s citizen has also circulated the slogan “Investing in what you know”, to remind the savers that only a handful of “ten ten” could compensate for the inevitable losers.
In the April 2023 interview, Lynch expressed that many shoppers were “cautious when they buy a refrigerator”, however they will drop thousands on an audible end “on the bus”, exceeding the examination of the turbine. Its repair requires a clear fact -based thesis about the reason for raising profits, not momentum, an arrow.
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He is still looking for companies “either in a transformation mode or about to grow”, as he manufactured TJX retail stores, Chip Titan Nvidia, previous success stories Panera and Family Dollaar as examples of a “different thing” that deserves research, although he did not stop recommending anything.
Even the maestro has remorse. “apple Aapl It was not difficult to understand. I mean, how stupid you were? “I admit, adding that Nafidia Company Nvda He became a “huge stock” after it passed. However, Lynch insists that his book of 1989 is escalating: the heart of more rocks is more than the crowd, and the survival is patient, and the graph does not claim to think.
Why do it matter: Lynch is not the only person who truly believes in business understanding by investing in it. Warren BuffettFor anyone, he loves pores on annual reports like most people pass social media.
Peter Lynch, like Buffett, also believes in closing long -term horizons. In his book “Learn To Conner”, Lynch calls for a twenty -year investment horizon as the ideal time frame for the success of the stock market. He says this period provides sufficient time to apostasy from market decline and profit assembly.
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