Wednesday, July 18, 2012: Issue #1817
Going Outside My Research Department…
- Buffett was (and is) a value guy.
- Lynch was a growth analyst.
- Templeton was a global markets pioneer.
11 Lessons From Peter Lynch
- Behind every stock is a company. Find out what it’s doing.
- Never invest in any idea you can’t illustrate with a crayon.
- Over the short term, there may be no correlation between the success of a company’s operations and the success of its stock. Over the long term, there’s a 100% correlation.
- Buying stocks without studying the companies is the same as playing poker – and never looking at your cards.
- Time is on your side when you own shares of superior companies.
- Owning stock is like having children. Don’t get involved with more than you can handle.
- When the insiders are buying, it’s a good sign.
- Unless you’re a short seller, it never pays to be pessimistic.
- A stock market decline is as predictable as a January blizzard in Colorado. If you’re prepared, it can’t hurt you.
- Everyone has the brainpower to make money in stocks. Not everyone has the stomach.
- Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what’s actually happening to the companies in which you’ve invested.