Ed Pratolo > Ed's Quotes

“The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Whenever you invest in any company, you’re looking for its market cap to rise. This can’t happen unless buyers are paying higher prices for the shares, making your investment more valuable.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Big companies have small moves, small companies have big moves.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Know what you own, and know why you own it”
― Peter Lynch, One Up On Wall Street: How to Use What You Already Know to Make Money in the Market

“It takes remarkable patience to hold on to a stock in a company that excites you, but which everybody else seems to ignore. You begin to think everybody else is right and you are wrong. But where the fundamentals are promising, patience is often rewarded—Lukens stock went up sixfold in the fifteenth year, American Greetings was a sixbagger in six years, Angelica a sevenbagger in four, Brunswick a sixbagger in five, and SmithKline a threebagger in two.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“If you can follow only one bit of data, follow the earnings—assuming the company in question has earnings. As you’ll see in this text, I subscribe to the crusty notion that sooner or later earnings make or break an investment in equities. What the stock price does today, tomorrow, or next week is only a distraction.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Here are some pointers from this section: • Understand the nature of the companies you own and the specific reasons for holding the stock. (“It is really going up!” doesn’t count.) • By putting your stocks into categories you’ll have a better idea of what to expect from them.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Peter Lynch doesn’t advise you to buy stock in your favorite store just because you like shopping in the store, nor should you buy stock in a manufacturer because it makes your favorite product or a restaurant because you like the food. Liking a store, a product, or a restaurant is a good reason to get interested in a company and put it on your research list, but it’s not enough of a reason to own the stock! Never invest in any company before you’ve done the homework on the company’s earnings prospects, financial condition, competitive position, plans for expansion, and so forth.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In

“Moderately fast growers (20 to 25 percent) in nongrowth industries are ideal investments. • Look for companies with niches. • When purchasing depressed stocks in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loads of bank debt. • Companies that have no debt can’t go bankrupt. • Managerial ability may be important, but it’s quite difficult to assess. Base your purchases on the company’s prospects, not on the president’s resume or speaking ability. • A lot of money can be made when a troubled company turns around. • Carefully consider the price-earnings ratio. If the stock is grossly overpriced, even if everything else goes right, you won’t make any money. • Find a story line to follow as a way of monitoring a company’s progress. • Look for companies that consistently buy back their own shares.”
― Peter Lynch, One Up On Wall Street: How To Use What You Already Know To Make Money In