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Lynch provides insight on how to achieve exceptional results
In an interview he gave to PBS, Peter Lynch discussed what is needed to achieve a track record similar to his. Even though the answer seems simple on the surface, it has many insights that are worth commenting on.
Q: Was that your secret?
A: Well, I think the secret is, if you have a lot of stocks, some will do mediocre, some will do OK, and if one or two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people. Some stocks go up 20% to 30%, and they get rid of it, and they hold on to the dogs. And it's sort of like watering the weeds and cutting out the flowers. You want to let the winners run. When the fun ones get better, add to 'em, and that one winner, you basically see a few stocks in your lifetime, that's all you need. I mean stocks are out there. When I ran Magellan, I wrote a book. I think I listed over 100 stocks that went up over tenfold when I ran Magellan, and I owned thousands of stocks. I owned none of these stocks. I missed every one of these stocks that went up over tenfold. I didn't own a share of them. And I still managed to do well with Magellan. So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes.
Read more on Peter Lynch? http://createwealth8888.blogspot.com/search?q=peter+lynch
20 years as retail in SGX getting his hands dirty on the ground!
Posts
We need to train our abilities to recognise those flowers and keep them and kill those weeds to recycle our capital.
ReplyDeleteWhile pulling out those supposed looking like weeds, sometime we may mistaken flowers as weeds. Aiyoh. Sianz!
DeleteIt is long period of self training to grow that pair of eyes to see flowering buds
ReplyDeleteBees are institution players?
ReplyDelete