One Up On Wall Street Quotes

“The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Know what you own, and know why you own it”
― Peter Lynch, One Up On Wall Street: How to Use What You Already Know to Make Money in the Market

“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Remember, things are never clear until it’s too late.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Moderately fast growers (20 to 25 percent) in nongrowth industries are ideal investments. • Look for companies with niches. • When purchasing depressed stocks in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loads of bank debt. • Companies that have no debt can’t go bankrupt. • Managerial ability may be important, but it’s quite difficult to assess. Base your purchases on the company’s prospects, not on the president’s resume or speaking ability. • A lot of money can be made when a troubled company turns around. • Carefully consider the price-earnings ratio. If the stock is grossly overpriced, even if everything else goes right, you won’t make any money. • Find a story line to follow as a way of monitoring a company’s progress. • Look for companies that consistently buy back their own shares.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“When you sell in desperation, you always sell cheap.”
― Peter Lynch, One Up On Wall Street: How to Use What You Already Know to Make Money in the Market

“Whenever you invest in any company, you’re looking for its market cap to rise. This can’t happen unless buyers are paying higher prices for the shares, making your investment more valuable.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Big companies have small moves, small companies have big moves.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“If you can follow only one bit of data, follow the earnings—assuming the company in question has earnings. As you’ll see in this text, I subscribe to the crusty notion that sooner or later earnings make or break an investment in equities. What the stock price does today, tomorrow, or next week is only a distraction.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“It takes remarkable patience to hold on to a stock in a company that excites you, but which everybody else seems to ignore. You begin to think everybody else is right and you are wrong. But where the fundamentals are promising, patience is often rewarded—Lukens stock went up sixfold in the fifteenth year, American Greetings was a sixbagger in six years, Angelica a sevenbagger in four, Brunswick a sixbagger in five, and SmithKline a threebagger in two.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“The secret of his success is that he never went to business school. Imagina all the lessons he never had to unlearn.”
― Peter Lynch, One Up On Wall Street: How to Use What You Already Know to Make Money in the Market

“The old Wall Street adage "never invest in anything that eats or needs repairs" may apply to racehorses, but it's malarkey when it comes to houses.”
― Peter Lynch, One Up On Wall Street: How to Use What You Already Know to Make Money in the Market

“The typical big winner in the Lynch portfolio (I continue to pick my share of losers, too!) generally takes three to ten years or more to play out.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Look for small companies that are already profitable and have proven that their concept can be replicated. • Be suspicious of companies with growth rates of 50 to 100 percent a year.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“If you find a stock with little or no institutional ownership, you’ve found a potential winner. Find a company that no analyst has ever visited, or that no analyst would admit to knowing about, and you’ve got a double winner. When I talk to a company that tells me the last analyst showed up three years ago, I can hardly contain my enthusiasm. It frequently happens with banks, savings-and-loans, and insurance companies, since there are thousands of these and Wall Street only keeps up with fifty to one hundred.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Peter Lynch doesn’t advise you to buy stock in your favorite store just because you like shopping in the store, nor should you buy stock in a manufacturer because it makes your favorite product or a restaurant because you like the food. Liking a store, a product, or a restaurant is a good reason to get interested in a company and put it on your research list, but it’s not enough of a reason to own the stock! Never invest in any company before you’ve done the homework on the company’s earnings prospects, financial condition, competitive position, plans for expansion, and so forth.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Here are some pointers from this section: • Understand the nature of the companies you own and the specific reasons for holding the stock. (“It is really going up!” doesn’t count.) • By putting your stocks into categories you’ll have a better idea of what to expect from them.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Stocks you trade, it's wives you're stuck with.”
― Peter Lynch, One Up On Wall Street: How to Use What You Already Know to Make Money in the Market

“When looking at the same sky, people in mature industries see clouds where people in immature industries see pie.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Understand the nature of the companies you own and the specific reasons for holding the stock. (“It is really going up!” doesn’t count.)”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Actually Wall Street thinks just as the Greeks did. The early Greeks used to sit around for days and debate how many teeth a horse has. They thought they could figure it out by just sitting there, instead of checking the horse. A”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“The stock is selling at a p/e of 30, while the most optimistic projections of earnings growth are 15–20 percent for the next two years.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“There are five basic ways a company can increase earnings*: reduce costs; raise prices; expand into new markets; sell more of its product in the old markets; or revitalize, close, or otherwise dispose of a losing operation.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“In stage four, once again they’re crowded around me—but this time it’s to tell me what stocks I should buy. Even the dentist has three or four tips, and in the next few days I look up his recommendations in the newspaper and they’ve all gone up. When the neighbors tell me what to buy and then I wish I had taken their advice, it’s a sure sign that the market has reached a top and is due for a tumble.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“The more cash that builds up in the treasury, the greater the pressure to piss it away.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“company and for similar companies in the same industry. • The percentage of institutional ownership. The lower the better. • Whether insiders are buying and whether the company itself is buying back its own shares. Both are positive signs. • The record of earnings growth to date and whether the earnings are sporadic or consistent. (The only category where earnings may not be important is in the asset play.) • Whether the company has a strong balance sheet or a weak balance sheet (debt-to-equity ratio) and how it’s rated for financial strength. • The cash position. With $16 in net cash, I know Ford is unlikely to drop below $16 a share. That’s the floor on the stock. SLOW GROWERS • Since you buy these for the dividends (why else would”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“If the p/e of Coca-Cola is 15, you’d expect the company to be growing at about 15 percent a year, etc. But if the p/e ratio is less than the growth rate, you may have found yourself a bargain. A company, say, with a growth rate of 12 percent a year (also known as a “12-percent grower”) and a p/e ratio of 6 is a very attractive prospect.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“You have to keep your priorities straight, if you plan to do well in stocks.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“In college, except for the obligatory courses, I avoided science, math, and accounting—all the normal preparations for business. I was on the arts side of school, and along with the usual history, psychology, and political science, I also studied metaphysics, epistemology, logic, religion, and the philosophy of the ancient Greeks. As I look back on it now, it’s obvious that studying history and philosophy was much better preparation for the stock market than, say, studying statistics. Investing in stocks is an art, not a science, and people who’ve been trained to rigidly quantify everything have a big disadvantage”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“the stock market demands conviction as surely as it victimizes the unconvinced.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In