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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

  • stock analysis
  • valuation
  • portfolio management

Putting it to work

  • study company earnings
  • track business growth
  • look past the ticker

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

  1. The key to making money in stocks is not to get scared out of them.

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  2. 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
  3. 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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