Hello. I am Deepak Kundu, an avid book reader and quotes collector. As a hobby, I collect interesting quotes from the books that I read.
This post is a collection of 20 quotes from the book - One Up on Wall Street by Peter Lynch. I hope you find these quotes useful.
One Up on Wall Street Quotes
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.
People are advised to think long-term, but the constant comment on every gyration puts people on edge and keeps them focused on the short term. It’s a challenge not to act on it. If there were a way to avoid the obsession with the latest ups and downs, and check stock prices every six months or so, the way you’d check the oil in a car, investors might be more relaxed.
Stop listening to professionals! Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert.
This is investing, where the smart money isn’t so smart, and the dumb money isn’t really as dumb as it thinks. Dumb money is only dumb when it listens to the smart money.
It is personal preparation, as much as knowledge and research, that distinguishes the successful stockpicker from the chronic loser. Ultimately it is not the stock market nor even the companies themselves that determine an investor’s fate. It is the investor.
Investing in stocks is an art, not a science, and people who’ve been trained to rigidly quantify everything have a big disadvantage.
Buy the right stocks at the wrong price at the wrong time and you’ll suffer great losses.
Historically, stocks are embraced as investments or dismissed as gambles in routine and circular fashion, and usually at the wrong times. Stocks are most likely to be accepted as prudent at the moment they’re not.
To me, an investment is simply a gamble in which you’ve managed to tilt the odds in your favor. It doesn’t matter whether it’s Atlantic City or the S&P 500 or the bond market.
No wonder people make money in the real estate market and lose money in the stock market. They spend months choosing their houses, and minutes choosing their stocks.
The true contrarian is not the investor who takes the opposite side of a popular hot issue. The true contrarian waits for things to cool down and buys stocks that nobody cares about, and especially those that make Wall Street yawn.
When the neighbors tell me what to buy and then I wish I had taken their advice, it’s a sure sign that the market has reached a top and is due for a tumble.
A great patients’ drug is one that cures an affliction once and for all, but a great investor’s drug is one that the patient has to keep buying.
Investing without research is like playing stud poker and never looking at the cards.
If you have a can’t-fail idea but no way of protecting it with a patent or a niche, as soon as you succeed, you’ll be warding off the imitators. In business, imitation is the sincerest form of battery.
The current stock price tells us absolutely nothing about the future prospects of a company, and it occasionally moves in the opposite direction of the fundamentals.
One of the biggest troubles with stock market advice is that good or bad it sticks in your brain. You can’t get it out of there, and someday, sometime, you may find yourself reacting to it.
Trying to catch the bottom on a falling stock is like trying to catch a falling knife. It’s normally a good idea to wait until the knife hits the ground and sticks, then vibrates for a while and settles down before you try to grab it. Grabbing a rapidly falling stock results in painful surprises, because inevitably you grab it in the wrong place.
I’ve never been able to predict which stocks will go up tenfold, or which will go up fivefold. I try to stick with them as long as the story’s intact, hoping to be pleasantly surprised. The success of a company isn’t the surprise, but what the shares bring often is.
When you buy a share of stock, even a very risky stock, you are contributing something to the growth of the country. That’s what stocks are for. [...]. In the multibillion-dollar futures and options market, not a bit of the money is put to any constructive use. It doesn’t finance anything, except the cars, planes, and houses purchased by the brokers and the handful of winners. What we’re witnessing here is a giant transfer payment from the unwary to the wary.