Entrepreneurs / Investors

80 Peter Lynch Quotes (ONE UP ON WALL STREET)

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Born on 19 January 1944 in Newton, Massachusetts, U.S., Peter Lynch is one of the most well-known investors who managed to realize annual returns of 29.2% as head at Fidelity Magellan between 1977 to 1990.

When he took over, Fidelity Magellan only had $20 million in assets, by 1990, the company grew to over $14 billion. Peter Lynch and his team managed to outperform the S&P 500 index almost every year. His success allows him to retire at a young age of 47.

Credited for his invention of the price-to-earnings-growth (PEG) ratio, Peter Lynch has helped many investors determine a stock growth potential by using the valuation methods.

Peter Lynch is also an astonishing Philanthropist. In 2005, the Lynch Foundation was built to support research in education, religious organizations, hospitals and medicine, and various cultural and historical organizations.

Furthermore, Lynch is an exceptional author with two phenomenal bestsellers under his belt: ‘One Up On Wall Street (1989)’ and ‘Beating the Street (1994).’

Also read: Most Famous Warren Buffett Quotes (INVESTING)

Further reading:

Below are the best Peter Lynch quotes so you can be inspired to do your homework, invest in the long term, and not allow the volatility of the market to cloud your vision.

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Top 13 Most Famous Peter Lynch Quotes on Economy & Investing

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.”

Peter Lynch
Never invest in any idea you can’t illustrate with a crayon.
Never invest in any idea you can’t illustrate with a crayon.
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.
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.
Owning stocks is like having children - don't get involved with more than you can handle.
Owning stocks is like having children – don’t get involved with more than you can handle.
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.
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.
Time is on your side when you own shares of superior companies.
Time is on your side when you own shares of superior companies.
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.
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.
Know what you own, and know why you own it.
Know what you own, and know why you own it.
Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.
Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.
In stocks as in romance, ease of divorce is not a sound basis for commitment.
In stocks as in romance, ease of divorce is not a sound basis for commitment. Also read: Love Quotes
Every time you have one of these recessions, there are always groups who say it is different this time. We won't get out of this one.
Every time you have one of these recessions, there are always groups who say it is different this time. We won’t get out of this one.
When you sell in desperation, you always sell cheap.
When you sell in desperation, you always sell cheap.
The key to making money in stocks is not to get scared out of them.
The key to making money in stocks is not to get scared out of them.

67 Best Peter Lynch Quotes to Help You Become Wiser in Stock Investing

If you’re prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won’t get bored.”

Peter Lynch
There's no such thing as a worry-free investment. The trick is to separate the valid worries from the idle worries, and then check the worries against the facts.
There’s no such thing as a worry-free investment. The trick is to separate the valid worries from the idle worries, and then check the worries against the facts.
With every company, there is something to worry about, but the question is, which worries are valid and which are not?
With every company, there is something to worry about, but the question is, which worries are valid and which are not?
Remember, things are never clear until it’s too late.
Remember, things are never clear until it’s too late.
There's no shame in losing money on a stock. Everybody does it. What is shameful is to hold on to a stock, or worse, to buy more of it when the fundamentals are deteriorating.
There’s no shame in losing money on a stock. Everybody does it. What is shameful is to hold on to a stock, or worse, to buy more of it when the fundamentals are deteriorating.
The strength of our economy is that it is dynamic and always adapting to changing conditions. That's our advantage in the world.
The strength of our economy is that it is dynamic and always adapting to changing conditions. That’s our advantage in the world.
My idea of a great business is one that has a shortage of competitors.
My idea of a great business is one that has a shortage of competitors.
In business, competition is never as healthy as total domination.
In business, competition is never as healthy as total domination.
Your investor's edge is not something you get from Wall Street experts. It's something you already have.
Your investor’s edge is not something you get from Wall Street experts. It’s something you already have.
You can outperform the experts if you use your edge by investing in companies or industries you already understand.
You can outperform the experts if you use your edge by investing in companies or industries you already understand.

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
Behind every stock is a company. Find out what it's doing.
Behind every stock is a company. Find out what it’s doing.
Never invest in any company before you’ve done the homework on the company’s earnings prospects, financial condition, competitive position, etc.
Never invest in any company before you’ve done the homework on the company’s earnings prospects, financial condition, competitive position, etc.
Big companies have small moves, small companies have big moves.
Big companies have small moves, small companies have big moves.
All else being equal, invest in the company with the fewest color photographs in the annual report.
All else being equal, invest in the company with the fewest color photographs in the annual report.
Job insecurity has been a problem for as long as people have depended on a paycheck.
Job insecurity has been a problem for as long as people have depended on a paycheck.
If it's a choice between investing in a good company in a great industry, or a great company in a lousy industry, I'll take the great company in the lousy industry any day.
If it’s a choice between investing in a good company in a great industry, or a great company in a lousy industry, I’ll take the great company in the lousy industry any day.
Gentlemen who prefer bonds don’t know what they’re missing.
Gentlemen who prefer bonds don’t know what they’re missing.

Good management, a strong balance sheet, and a sensible plan of action will overcome many obstacles, but when you’ve got weak management, a weak balance sheet, and a misguided plan of action, the greatest industry in the world won’t bail you out.”

Peter Lynch
Go for a business that any idiot can run – because sooner or later any idiot probably is going to be running it.
Go for a business that any idiot can run – because sooner or later any idiot probably is going to be running it.
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.
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.
The more cash that builds up in the treasury, the greater the pressure to piss it away.
The more cash that builds up in the treasury, the greater the pressure to piss it away.
The secret of his success is that he never went to business school. Imagine all the lessons he never had to unlearn.
The secret of his success is that he never went to business school. Imagine all the lessons he never had to unlearn.
If you can't find any companies that you think are attractive, put your money in the bank until you discover some.
If you can’t find any companies that you think are attractive, put your money in the bank until you discover some.

The way you lose money in the stock market is to start off with an economic picture. I also spend fifteen minutes a year on where the stock market is going. All these great, heady, thinking deals kill you.”

Peter Lynch
Buy only what you understand, believe in, and intend to stick with - even when others are chasing the next miracle.
Buy only what you understand, believe in, and intend to stick with – even when others are chasing the next miracle.
If you don't study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
If discounting terrific things are already in the stock, I don't want to own it.
If discounting terrific things are already in the stock, I don’t want to own it.
You don’t get hurt by things that you don’t own that go up. It’s what you do own that kills you.
You don’t get hurt by things that you don’t own that go up. It’s what you do own that kills you.
The person that turns over the most rocks wins the game. And that's always been my philosophy.
The person that turns over the most rocks wins the game. And that’s always been my philosophy.

In the long run, a portfolio of well chosen stocks and/or equity mutual funds will always outperform a portfolio of bonds or a money-market account. In the long run, a portfolio of poorly chosen stocks won’t outperform the money left under the mattress.”

Peter Lynch
You have to say to yourself, "If I'm right, how much am I going to make? If I'm wrong, how much am I going to lose?" That's the risk/reward ratio.
You have to say to yourself, “If I’m right, how much am I going to make? If I’m wrong, how much am I going to lose?” That’s the risk/reward ratio.
You have to keep your priorities straight if you plan to do well in stocks.
You have to keep your priorities straight if you plan to do well in stocks.
Understand the nature of the companies you own and the specific reasons for holding the stock. (“It is really going up!” doesn’t count.)
Understand the nature of the companies you own and the specific reasons for holding the stock. (“It is really going up!” doesn’t count.)
The very best way to make money in a market is in a small growth company that has been profitable for a couple of years and simply goes on growing.
The very best way to make money in a market is in a small growth company that has been profitable for a couple of years and simply goes on growing.
A lot of my stocks don't work. The beauty of the stock market is that if you are wrong, if you put $1,000 up, all you lose is $1,000. I have proven that many times.
A lot of my stocks don’t work. The beauty of the stock market is that if you are wrong, if you put $1,000 up, all you lose is $1,000. I have proven that many times.
Don't buy "cheap" stocks just because they're cheap. Buy them because the fundamentals are improving.
Don’t buy “cheap” stocks just because they’re cheap. Buy them because the fundamentals are improving.
This is one of the keys to successful investing: focus on the companies, not on the stocks.
This is one of the keys to successful investing: focus on the companies, not on the stocks.
Stocks do well for a reason and do poorly for a reason. Make sure you know the reasons.
Stocks do well for a reason and do poorly for a reason. Make sure you know the reasons.

When you start to confuse Freddie Mac, Sallie Mae and Fannie Mae with members of your family, and you remember 2,000 stock symbols but forget the children’s birthdays, there’s a good chance you’ve become too wrapped up in your work.”

Peter Lynch
To make money, you must find something that nobody else knows, or do something that others won’t do because they have rigid mind-sets.
To make money, you must find something that nobody else knows, or do something that others won’t do because they have rigid mind-sets.
I deal in facts, not forecasting the future.
I deal in facts, not forecasting the future.
The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share.
The basic story remains simple and never-ending. Stocks aren’t lottery tickets. There’s a company attached to every share.
People worry about the riskiness of stocks, but bonds can be just as risky.
People worry about the riskiness of stocks, but bonds can be just as risky.
Long-term bonds can be almost as volatile as stocks. They have their own corrections.
Long-term bonds can be almost as volatile as stocks. They have their own corrections.
The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.
The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.
In this business, if you're good, you're right six times out of ten. You're never going to be right nine times out of ten.
In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.
The biggest winners are surprises to me, and takeovers are even more surprising. It takes years, not months, to produce big results.
The biggest winners are surprises to me, and takeovers are even more surprising. It takes years, not months, to produce big results.
You can lose money very fast, in two months, but you very rarely make money very fast in the stock market. When I look back, my great stocks took a long time to work out.
You can lose money very fast, in two months, but you very rarely make money very fast in the stock market. When I look back, my great stocks took a long time to work out.
The typical big winner in the Lynch portfolio generally takes three to ten years to play out.
The typical big winner in the Lynch portfolio generally takes three to ten years to play out.
I think the secret is if you have a lot of stocks, some will do mediocre, some will do okay, and if one or two of 'em go up big time, you produce a fabulous result.
I think the secret is if you have a lot of stocks, some will do mediocre, some will do okay, and if one or two of ’em go up big time, you produce a fabulous result.
All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.
All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.
If you're lucky enough to have one golden egg in your portfolio, it may not matter if you have a couple of rotten ones in there with it.
If you’re lucky enough to have one golden egg in your portfolio, it may not matter if you have a couple of rotten ones in there with it.
As corporate profits increase, corporations become more valuable, and sooner or later, their shares will sell for a higher price.
As corporate profits increase, corporations become more valuable, and sooner or later, their shares will sell for a higher price.
What makes stocks valuable in the long run isn't "the market." It's the profitability of the shares in the companies you own.
What makes stocks valuable in the long run isn’t “the market.” It’s the profitability of the shares in the companies you own.
The market at this point is institutional and we all act like a herd.
The market at this point is institutional and we all act like a herd.
Missing the bottom on the way up won't cost you anything. It's missing the top on the way down that's always expensive.
Missing the bottom on the way up won’t cost you anything. It’s missing the top on the way down that’s always expensive.
If you're in the market, you have to know there's going to be declines.
If you’re in the market, you have to know there’s going to be declines.
In the long run, it's not just how much money you make that will determine your future prosperity. It's how much of that money you put to work by saving it and investing it.
In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.

If you’re lucky enough to have been rewarded in life to the degree that I have, there comes a point at which you have to decide whether to become a slave to your net worth by devoting the rest of your life to increasing it or to let what you’ve accumulated begin to serve you.”

Peter Lynch
You remind yourself that nobody on his deathbed ever said, ‘I’d wish I’d spent more time at the office.’
You remind yourself that nobody on his deathbed ever said, ‘I’d wish I’d spent more time at the office.’
It's human nature to keep doing something as long as it's pleasurable and you can succeed at it, which is why the world population continues to double every 40 years.
It’s human nature to keep doing something as long as it’s pleasurable and you can succeed at it, which is why the world population continues to double every 40 years.
Investing in stocks is an art, not a science, and people who’ve been trained to rigidly quantify everything have a big disadvantage.
Investing in stocks is an art, not a science, and people who’ve been trained to rigidly quantify everything have a big disadvantage.
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.
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.
In our society, it's been the men who've handled most of the finances, and the women who've stood by and watched men botch things up.
In our society, it’s been the men who’ve handled most of the finances, and the women who’ve stood by and watched men botch things up.
If your only reason for picking a stock is that an expert likes it, then what you really need is paid professional help.
If your only reason for picking a stock is that an expert likes it, then what you really need is paid professional help.
The simpler it is, the better I like it.
The simpler it is, the better I like it. Also read: Minimalism Quotes

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