Peter Lynch, the author of the influential investment book “One Up On Wall Street,” clarified his stance on investing in the stock market.
The investor Peter Lynchknown for his notable 13-year career managing the Fidelity Magellan Fundrecently said that he never explicitly promoted investing in the stock market that his goal It is not to encourage investment in the stock marketbut rather provide guidance to those who decide to invest on how to do it correctly.
During his management of the Fidelity Magellan fund, from 1977 to 1990, the fund achieved an average annual return of 29.2%, making Lynch a famous figure in the investment world. His “buy what you know” mantra sums up his straightforward approach to investing.
Despite his achievements, Lynch stressed that investing in the stock market is not a game. “It is not played in the market. And maybe I didn’t emphasize it enough in the book. It is very important to note that I did not say to invest in the stock market. “So the reason I wrote ‘One Up On Wall Street’ was to help people who wanted to invest,” he said.
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Lynch’s advice
For those thinking about investing, Lynch’s advice is understand the history of the company, control the fundamentals and follow the history. He also recommended creating a portfolio of US$100,000 with at least 10 stocks before investing more money to test your investing skills.
“There are also the recovery cases that are talked about if you work in the industry, if you work in the steel industry, the insurance industry, shipping, chemicals, railways, things may get better before Wall Street fund managers see it. You don’t need many cases like that in life. When things go from terrible to semi-terrible to acceptable, there is a lot of money to be made“Lynch advised.
Source: Ambito
