Investing Made Simple by Uncle8888 (37)

Read? Investing Made Simple by Uncle8888 (36)


Market Timing and Luck
"Luck is the sense to recognise an opportunity and the ability to take advantage of it. Everyone has bad breaks, but everyone also has opportunities" - Samuel


"Of course luck comes into it - It's all part of the numbers game. What's important to be conscious of is, if you prepare the ground properly, do the best you can, and you pay attention to the detail, you give yourself the best chance and being blessed with that luck" - Adam



Peter Lynch, the former manager of Fidelity's Magellan Fund, once said that he felt that over half of the share holders in his fund had lost money, based on when they had bought and sold Magellan. This is a fund that has averaged over 18% a year for the last ten years, and over 22% a year during its lifetime (since 1963)!



What can we learn from Peter Lynch's above saying?

Not market timing; then what?