One Up On Wall Street: How To Use What You Already Know To Make Money In

by Peter Lynch

Companies are dynamic, and prospects change. There simply isn’t a stock you can own that you can afford to ignore.

Most of the money I make is in the third or fourth year that I’ve owned something—only

A stock’s going up or down after you buy it only tells you that there was somebody who was willing to pay more—or less—for the identical merchandise.

that the market, like individual stocks, can move in the opposite direction of the fundamentals over the short term,

Small investors don’t have to fight this mob. They can calmly walk in the entrance when there’s a crowd at the exit, and walk out the exit when there’s a crowd at the entrance.

I buy and sell every day. But my biggest winners continue to be stocks I’ve held for three and even four years.

When you invest in stocks, you have to have a basic faith in human nature, in capitalism, in the country at large, and in future prosperity in general.

Selling an outstanding fast grower because its stock seems slightly overpriced is a losing technique.

By careful pruning and rotation based on fundamentals, you can improve your results. When stocks are out of line with reality and better alternatives exist, sell them and switch into something else.