19 Investing Maxims From Peter Lynch's book "Beating the Street"
1. A good company usually increases its dividend every year.
2. You can lose money in a very short time but it takes a long time to make money.
2. You can lose money in a very short time but it takes a long time to make money.
3. 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.
4. You can make a lot of money from the stock market, but then again you can also lose money.
5. You have to research the company before you put your money into it.
5. You have to research the company before you put your money into it.
6. When you invest in the stock market you should always diversify.
7. 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.
7. 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.
8. Never fall in love with a stock; always have an open mind.
9. You shouldn't just pick a stock--you should do your homework.
9. You shouldn't just pick a stock--you should do your homework.
10. Buying stocks in utility companies is good because it gives you a higher dividend, but you'll make money in growth stocks.
11. Just because a stock goes down doesn't mean it can't go lower.
11. Just because a stock goes down doesn't mean it can't go lower.
12. Over the long term, it's better to buy stocks in small companies.
13. You should not buy a stock because it is cheap but because you know a lot about it.
13. You should not buy a stock because it is cheap but because you know a lot about it.
14. Hold no more stocks than you can remain informed on.
15. Invest regularly.
15. Invest regularly.
16. You want to see, first, that sales and earnings per share are moving forward at an acceptable rate and, second, that you can buy the stock at a reasonable price.
17. It is well to consider the financial strength and debt structure to see if a few bad years would hinder the company's long-term progress.
18. Buy or do not buy the stock on the basis of whether or not the growth meets your objectives and whether the price is reasonable.
19. Understanding the reasons for past sales growth will help you form a good judgment as to the likelihood of past growth ratesย continuing.
19. Understanding the reasons for past sales growth will help you form a good judgment as to the likelihood of past growth ratesย continuing.
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- Stock holdings
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of the world's greatest investors.
Follow for more:
@ValueInvestorAc
If enjoyed this, please help us reach a greater audience by retweeting the first tweet of the thread. Thanks!
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