These are some of Peter Lynch's outcomes about the market's behavior. I thought captivating and I am sharing them with you.
He says that we should memorize and repeat the following quotes at the shower, to save ourselves from making mistakes in the future. I will make short notes for each one, reporting my own experience.
"A good company usually increases its dividend every year" (I've never thought about it. It's something to cover from now on)
"You can lose money in a very short time but it takes a long time to make money" (True, you have to be patient)
"The stock market really isn't a gamble, as long as you pick good companies that you think will do well, and not just because of the stock price" (People who think that stock market is a gamble, in general, put their money in options. I've already done it myself and it wasn't a good experience)
"You can make a lot of money from the stock market, but then again you can lose money, as we proved" (The important is act as an investor - thinking in a long term)
"You have to research the company before you put your money into it" (Don't follow the flock)
"When you invest in the stock market you should always diversify" (True!)
"You should invest in several stocks because out of every five you pick one will be very great, one will be really bad, and three will be OK" (Interesting)
"Never fall in love with a stock; always have an open mind" (I have this problem sometimes. I really fall in love for some stocks - I am being honest.)
"You shouldn't just pick a stock - you should do your homework" (As I said before, don't follow the flock. Someone once told me - make money demands a bunch of effort!)
"Buying stocks in utility companies is good because it gives you a higher dividend, but you'll make money in grown stocks" (Following the advice of the master Warren Buffet)
"Just because a stock goes down doesn't mean it can't go lower" (Never buy stocks because they are under the line, they can go deeper)
"Over the long term, it's better to buy stock in small companies" (This is exactly what I am doing right now. May be small companies would have a better governance)
"You should not buy a stock because it's cheap but because you know a lot about it" (Ouch!! I did a lot of that - but I learned)
Bye and success to you all!
He says that we should memorize and repeat the following quotes at the shower, to save ourselves from making mistakes in the future. I will make short notes for each one, reporting my own experience.
"A good company usually increases its dividend every year" (I've never thought about it. It's something to cover from now on)
"You can lose money in a very short time but it takes a long time to make money" (True, you have to be patient)
"The stock market really isn't a gamble, as long as you pick good companies that you think will do well, and not just because of the stock price" (People who think that stock market is a gamble, in general, put their money in options. I've already done it myself and it wasn't a good experience)
"You can make a lot of money from the stock market, but then again you can lose money, as we proved" (The important is act as an investor - thinking in a long term)
"You have to research the company before you put your money into it" (Don't follow the flock)
"When you invest in the stock market you should always diversify" (True!)
"You should invest in several stocks because out of every five you pick one will be very great, one will be really bad, and three will be OK" (Interesting)
"Never fall in love with a stock; always have an open mind" (I have this problem sometimes. I really fall in love for some stocks - I am being honest.)
"You shouldn't just pick a stock - you should do your homework" (As I said before, don't follow the flock. Someone once told me - make money demands a bunch of effort!)
"Buying stocks in utility companies is good because it gives you a higher dividend, but you'll make money in grown stocks" (Following the advice of the master Warren Buffet)
"Just because a stock goes down doesn't mean it can't go lower" (Never buy stocks because they are under the line, they can go deeper)
"Over the long term, it's better to buy stock in small companies" (This is exactly what I am doing right now. May be small companies would have a better governance)
"You should not buy a stock because it's cheap but because you know a lot about it" (Ouch!! I did a lot of that - but I learned)
Bye and success to you all!
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