I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
About this quote
- What does it mean?
- Stock prices rise when the actual company performance improves or the company grows.
- In plain terms
- Companies grow better so stocks go up.
- What can you take from it?
- Focus on company health not just stock charts.
Where it applies
Putting it to work
Questions to consider
- Do you buy stocks or businesses?
- How do you assess a company?
Another view
Market sentiment often drives prices independent of actual company performance.
More from Peter Lynch
The key to making money in stocks is not to get scared out of them.
Permalink to quote #3 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.
Permalink to quote #5 The person that turns over the most rocks wins the game. And that's always been my philosophy.
Permalink to quote #2
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