Peter Lynch – Top 15 Rules Prepare To Invest

Top 15 rules prescribed by Peter Lynch. This is especially important if you are just starting out on the investment journey

Consider the following 15 rules while you are starting to Invest…

  1. Take advantage of what you already know
  2. Look for opportunities that haven’t yet been discovered and certified by Dalal Street [Wall Street] – companies that are “off the radar scope”
  3. Invest in a house before you invest in a stock
  4. Invest in companies, not in the stock market
  5. Ignore short-term fluctuations
  6. Large profits can be made in common stocks
  7. Large losses can be made in common stocks
  8. Predicting the economy is futile
  9. Predicting the short-term direction of the stock market is futile
  10. The long-term returns from stocks are both relatively predictable & also far superior to the long-term returns from bonds
  11. Keeping up with a company in which you own stock is like playing an endless game
  12. Common stocks aren’t for everyone, nor even for all phases of a person’s life.
  13. The average person is exposed to interesting local companies and products years before the professionals.
  14. Having an edge will help you make money in stocks.
  15. In the stock market, one in the hand is worth ten in the bush

Peter Lynch Advice

Courtesy: Peter Lynch

Book: One Up on Wall Street – (Must Read for all investors)

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