20 Best Peter Lynch Quotes For Traders

Peter Lynch Quotes

Peter Lynch, born January 19, 1944, is an American Investor, philanthropist, and mutual fund manager. 

He is considered to be one of the most successful stock market investors of all time. During Lynch's 13-year tenure as manager of the Magellan Fund at Fidelity Investments, assets under management increased from $18 million to $14 billion

His investing philosophy is simple. It stems from the idea that anyone can find success in the stock market with a little bit of research, patience, and resilience. Peter Lynch also believes that everyday retail investors have an advantage over the professionals on Wall Street because they are more familiar with the marketplace.

One famous story is that one day his wife told him how much she loved a new product she bought, L'eggs pantyhose. Lynch looked into the company's prospects and liked what he was seeing. Lynch ended up buying the maker of L'eggs pantyhose which is Hanes Company and seeing a 30-fold appreciation in the stock.

He believes that this story should hold true to all investors. That anyone can do the same if they keep their eyes open for potential opportunities.

“Invest in what you know” is a well-known financial mantra that has been coined by Lynch.

Peter Lynch Quotes for Traders

The key to making money in stocks is not to get scared out of them.

Peter Lynch

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

All the math you need in the stock market you get in the fourth grade.

Peter Lynch

Time is on your side when you own shares of superior companies.

Peter Lynch

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.

Peter Lynch

That's not to say there's no such thing as an overvalued market, but there's no point worrying about it.

Peter Lynch

The natural-born investor is a myth.

Peter Lynch

The simpler it is, the better I like it.

Peter Lynch

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.

Peter Lynch

Know what you own, and know why you own it.

Peter Lynch

If you can't find any companies that you think are attractive, put your money in the bank until you discover some.

Peter Lynch

If you can follow only one bit of data, follow the earnings.

Peter Lynch

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.

Peter Lynch

Owning stocks is like having children — don't get involved with more than you can handle.

Peter Lynch

You have to keep your priorities straight if you plan to do well in stocks.

Peter Lynch

The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share.

Peter Lynch

Behind every stock is a company. Find out what it's doing.

Peter Lynch

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

When you sell in desperation, you always sell cheap.

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.

Peter Lynch

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