Peter Lynch: Why 1% Investors Don't Fail
Summary
TLDRIn this interview, Peter Lynch, the renowned money manager and author of 'Beating the Street,' shares his insights on stock picking and the importance of investing in what you know. Lynch, who retired from managing the Fidelity Magellan Fund to spend more time with his family, discusses his philosophy of investing in familiar companies and industries. He emphasizes the correlation between a company's earnings and its stock performance, advising against speculation and promoting a long-term, informed approach to investing. Lynch also touches on the Clinton economic plan, advocating for lower capital gains taxes and less government spending to encourage investment and job creation.
Takeaways
- π Peter Lynch, known for managing the Fidelity Magellan Fund, shares investment wisdom in his book 'Beating the Street', emphasizing the importance of understanding stocks before investing.
- π Lynch highlights the advantages individual investors have over professionals, such as a personal understanding of products and services, which can lead to successful stock picks.
- π« He advises against investing in companies or industries that one does not understand, suggesting that a simple explanation of a company's value to a 10-year-old is a good test of investment readiness.
- π Lynch made a significant life change, stepping back from managing money to spend more time with his family, demonstrating the value he places on work-life balance.
- π He encourages investors to focus on long-term earnings growth of companies rather than short-term market fluctuations or external economic factors.
- πΌ Lynch discusses his post-Fidelity role, which includes working with younger analysts and engaging in charitable activities, showing his commitment to giving back and mentoring.
- πΌ He also touches on the importance of government policies that encourage investment and job creation, such as lower capital gains tax rates and reduced regulations.
- π Lynch comments on the shift in technology from mainframe computers to personal computing, illustrating how IBM's business model was disrupted by the rise of Microsoft and the personal computer industry.
- π He provides insights into the performance of investment clubs, noting that many outperformed professional fund managers in the 1980s, suggesting that amateur investors can be successful with the right approach.
- π Lynch offers examples of companies he finds interesting, such as Au Bon Pain and Supercuts, emphasizing the potential of businesses with room for growth and a clear understanding of their market.
Q & A
What was Peter Lynch's role at Fidelity?
-Peter Lynch was the manager of the Fidelity Magellan Fund, which was a top-ranked General Equity mutual fund during his tenure.
Why did Peter Lynch decide to quit his job at Fidelity?
-Peter Lynch decided to quit his job to spend more time with his family, as he was working long hours and traveling extensively, which left him with little time for his wife and children.
How did Peter Lynch's daily routine change after leaving Fidelity?
-After leaving Fidelity, Peter Lynch reduced his workweek from 80-90 hours to 40-50 hours, making breakfasts and lunches for his kids, helping with their schoolwork, and getting involved in charitable activities.
What is the main advice Peter Lynch gives to individual investors in his book 'One Up On Wall Street'?
-Peter Lynch advises individual investors to invest in what they know and understand, emphasizing the importance of recognizing one's own advantages and natural industry insights.
What was the trend in the percentage of people's assets invested in stocks between 1960 and the time of the interview?
-Between 1960 and the time of the interview, the percentage of people's financial assets invested in stocks and mutual funds decreased from 40% to 17%.
Why does Peter Lynch believe that focusing on a company's earnings is a good investment strategy?
-Peter Lynch believes that there is a 100% correlation between a company's earnings over several years and the stock's performance, making it a reliable strategy for long-term investment.
What is Peter Lynch's view on the importance of understanding a company before investing in its stock?
-Peter Lynch stresses the importance of understanding a company's business model and being able to explain it simply. He suggests that if you can't explain a company's business to a 10-year-old, you shouldn't invest in it.
How does Peter Lynch feel about the role of government in creating jobs and stimulating the economy?
-Peter Lynch believes that jobs are created by companies starting businesses, not by government intervention, and that the economy will naturally recover from recessions without the need for stimulus packages.
What is Peter Lynch's opinion on the capital gains tax rate and its impact on investment?
-Peter Lynch is critical of the high capital gains tax rate, arguing that it discourages people from investing and that a lower rate would be more encouraging for investors.
What advice does Peter Lynch have for investors regarding the types of companies to watch or invest in?
-Peter Lynch advises investors to look for companies they understand and that are in industries they are familiar with, such as local companies or those in cyclical industries that have cut costs and are poised to benefit from an economic upturn.
Outlines
π Peter Lynch's Investment Wisdom and Personal Transition
In this segment, Peter Lynch, once hailed by Time Magazine as America's top money manager during his tenure at the Fidelity Magellan Fund, discusses his decision to step back from his high-intensity job to spend more time with his family. He emphasizes the importance of understanding one's investments and the advantages that individual investors have over professionals. Lynch also touches on his involvement in charity work and his return to a reduced workload at Fidelity, focusing on mentoring younger analysts. He shares insights from his book 'One Up on Wall Street' and his views on the importance of investing in stocks based on a deep understanding of the companies involved.
πΌ Practical Investment Strategies and Market Behavior
Peter Lynch continues the discussion by advocating for a hands-on approach to investing, suggesting that individuals should invest in industries they are familiar with to leverage their natural advantages. He criticizes the tendency of investors to diversify into unfamiliar sectors and the common mistake of treating stock investing as a short-term gamble. Lynch also addresses the unpredictability of economic factors such as interest rates and the economy, arguing that focusing on these can distract from the fundamentals of a company's performance. He shares anecdotes from his book, illustrating how understanding one's industry can lead to successful investment decisions.
ποΈ Reflections on Economic Policies and Corporate Strategies
In this part of the interview, Lynch discusses the Clinton economic plan, expressing approval of its focus on investing over spending. He criticizes the high capital gains tax rate and advocates for policies that encourage investment and business creation. Lynch also comments on the role of government in regulating businesses, balancing the need for consumer and environmental protection with the burden of excessive regulation. He provides his perspective on the challenges faced by companies like IBM and the importance of adapting to changing market conditions and technological advancements.
π Global Economic Outlook and Company Performance
Peter Lynch concludes the interview with his thoughts on the global economic situation, suggesting that cyclical stocks in industries like paper, aluminum, and steel could be promising as the economy recovers. He also mentions specific companies, such as Au Bon Pain and Supercuts, as examples of businesses with growth potential. Lynch emphasizes the importance of understanding a company's fundamentals and market position before investing, and he shares his outlook on the economy improving in the coming years, providing a hopeful note for investors.
Mindmap
Keywords
π‘Fidelity Magellan Fund
π‘Stocks
π‘Charitable Activities
π‘Investment Committee
π‘Earnings
π‘Recession
π‘Capital Gains Tax
π‘Regulations
π‘IBM
π‘Microsoft
Highlights
Peter Lynch, known as America's top money manager, shares insights from his experience leading the Fidelity Magellan Fund.
Lynch made a significant life decision to quit his high-stress job to spend more time with family.
He emphasizes the importance of family time and the shift in work-life balance after quitting his job.
Lynch discusses his new role in life, focusing on charity work and involvement in educational and community development.
His book 'Beating the Street' offers advice on stock picking and profit maximization, based on Lynch's extensive experience.
Lynch argues that the percentage of people's assets in stocks has decreased over time despite a favorable market.
He critiques the flawed methods of individual investors in the 1980s, suggesting a need for better investment strategies.
Lynch's investment philosophy is centered around understanding a company's earnings and potential for growth.
He advises against investing in companies one does not understand, advocating for a hands-on approach to investment.
Lynch shares anecdotes about successful investments, such as his wife's insight into a hosiery company's potential.
He discusses the importance of not overreacting to market fluctuations and focusing on long-term company performance.
Lynch argues against trying to predict economic factors like interest rates and instead suggests focusing on company fundamentals.
He shares his views on the Clinton economic plan, advocating for more investment and less spending.
Lynch expresses his concern over high capital gains tax rates and their impact on investment incentives.
He provides examples of successful companies and industries, like the restaurant sector, where investors can leverage their industry knowledge.
Lynch talks about his return to Fidelity, working with younger analysts to share his experience and knowledge.
He reflects on his satisfaction with his new life, emphasizing the importance of work-life balance and personal fulfillment.
Lynch offers a list of companies to watch, highlighting those with strong business models and growth potential.
Transcripts
we begin with Peter Lynch Time Magazine
has called him America's number one
money manager during the 13 years he
headed the Fidelity mellan Fund it was a
top ranked General Equity mutual fund
his new book beating the street offers
advice on picking stocks and maximizing
profits and he's here to talk to us
about a lot of things including his own
dramatic decision uh what four or five
years ago Peter welcome to the broadcast
four or five years ago you just said and
I've been managing all this money I'm
going to do I'm going to quit I'm yep
that's right and what and you went to
what well actually I wanted to spend
more time with my wife and my children
right and it it was an interesting
situation because I love my job I adored
my job and I and I liked outside
activities and when I when I was young
you know I didn't wasn't involved in
charity work until I was 30 no
activities younger children you just
read them a book and good night Moon and
they fall asleep and it's all over when
they get older there's there's more time
involved so I enjoyed the family I was I
was leaving for work at 6:00 in the
morning I was getting home at 7:00 at
night 6 days a week this was in Boston
yeah traveling 14 days a month it was
just too much so I said you know I I
said that's it I can't take it and
fortunately I had made enough money to
say I could give up the jobs I didn't
have to give up the family or the
outside activities and so what happened
then so you did what with your life well
I cut back from about a 80 890 hour week
to 40 or 50 hour week and I in the
morning I make breakfasts and lunches
for the kids and I do the spelling words
and the Spanish words and Carolyn does
the math and the science and I uh see
Carol in the morning and off I go to a
place you have to go some my opinion you
have to go somewhere to do something if
you stay at home you wind up answering
the telephone or watching cartoons so I
or falling asleep taking a nap so she
does the hard work and I go I go Fel
gave me an office I have a secretary and
I spend majority of the time working on
charity things like inner city schools
Inner City libraries inner city housing
you helping people manage their money or
no not at all not that I'm some of the
chares I'm on the investment Committee
of of some of the Museum of Fine Arts
you I'm involved in Mass General
Hospital Boston College but United Way
but all the extra things I added to were
real hands on actually being involved in
charitable activities you wrote a book
called one up on Wall Street and I think
that's one of the best selling books
ever about Wall Street if I'm not
correct you can correct me and so so why
then did you write another book okay
okay first I was very lucky I wrote it
with John Rothchild who he was made it
he made a big difference so he but I
think the reason I wrote it it was the
fir I try to explain to people their
great advantages their edges they have
and that they should get involved in
stocks right and they should do it on
the right basis this was on the first
book right yeah and obviously I didn't
make a great impression because the
percent of people's assets involved in
stocks has gone down in 1960 people had
40% of their financial assets including
their house in stocks and mutual funds
and 80 that was down to 25% it's now
down to 177% and why do you think that
is well I think people in the decade of
the 80s was the best decade this Century
for stocks I think people managed to
lose money in the 80s doing it
themselves because their methods were so
flawed so I I really feel as though I
wanted people to understand I don't want
anybody to buy a stock I'm saying if
you're going to buy a stock you should
do certain things if you're not willing
to do these things you should leave your
money in the bank your your philosophy
is is simple and I'm remembering this
from the previous book I think we're now
talking about the previous book correct
your philosophy was if you find
something that you identify with I
remember that was a story of your wife
and her hose your wife kept saying you
legs and pant your wife said these are
the greatest things I've ever seen and
when your wife said that you knew that
this was a product that was you used to
atent mot service
whatever the price was good and you said
this is a place that I can determine I
Peter Lynch can tell that this is a good
product right if these people making a
good product then their earnings are
going to go up therefore the stocks
going to go up and that's the kind of
decision-making process you ought to go
through right do I have it you've got it
exactly right well I I don't think
people understand there's 100%
correlation with what happens to a
company's earnings over several years
and what happens to the stock if the
company McDonald's has done very well as
a company right the stock has done very
well people worry about too much money
supply what's happened to the price of
oil whe who's the president who's being
nominated for the Supreme Court the
ozone layer it has nothing to do
McDonald's earnings go up the next 10
years the stock will go up yeah but what
they will say to you Peter is that as
you know and why am I telling you this
but I it's fun to tell you this they're
telling you that these other things
influence the amount of earnings of a
particular company if we're in a
recession people are not going to spend
as much money on going the movies or
whatever they do and and therefore you
got to pay attention to these other
things because they impact on ear they
are very important but you have no idea
of knowing what they're going to do Alan
Green span's the head of the Federal
Reserve right he cannot predict interest
rates yes he'd be the first to he can
influence them but he can't predict them
he cannot predict what long-term
interest rates are going to be one year
from now two years from now three years
he's even surprised how low they are now
right so how am I supposed to predict
interest rates how am I supposed to
predict the economy you certainly
remember the recession of 82 1982 we had
a 20% prime rate 14% unemployment 12 %
inflation I don't remember anybody
telling me in 1980 or 81 that was going
to happen all of a sudden we had the
worst recession since the depression I
didn't read about in the paper so it's
crazy to think about these things here's
a quote from you I own Dunkin Donuts
when you own Dunkin Donuts you don't
have to worry about Korean imports you
don't have to worry about M2 or M3 these
are money supply figures aren't they and
and what's happening to the money supply
this is the way you make money if you
don't understand what the company does
you should not be in it if you could
predict the stock market you could
predict the economy you could predict
interest rates if you go buy the wrong
stocks you're going to lose half your
money anyway right I I'm saying people
have natural advantages let's say what
you do for a living is you're involved
in the restaurant industry right you
supply paper products you supply kitchen
equipment you help build restaurants
right you saw McDonald's you saw Chi-Chi
you saw chilies you saw Cracker Barrel
you saw Dunkin' Donuts Kentucky Fried
Chicken Taco Bell these stories these
were 40 40 fold you made 40 or 50 times
your money you don't need to make that
kind of money many times in your life
right no no that's all you had to do was
follow the restaurant industry people
are in Industries they're in the
publishing industry they're in the
chemical industry the paper why don't
they just stay with an industry you only
need a few stocks a decade how many good
stocks you need a lifetime instead
people that in the restaurant industry
they're buying biotechnology stocks the
people in the chemical
IND the people in the chemical industry
are buying oil stocks it's absolutely
absurd people don't understand their
natural advantages and they don't use
them so that's that's bad number one but
worse number two is they don't if you
don't think you're a good ice skater or
if you're convinced you're not a good
chist you're not go out and try it but
people are buying stocks anyway they're
not discouraged they just think it's a
gamble yeah so therefore they go forward
and they they bet on one stock for a
week and a half and it goes up and they
they make $2 on it then they sell it and
they buy something else when three years
is over all they've done is generate a
lot of commissions they've probably lost
money that's a mistake so your advice is
what if you don't understand a company
if you can't explain it to a 10-year-old
in two minutes or less yes don't own it
because when it goes down let's say the
stock goes down two point you won't
understand what's going on what do you
do do you buy more do you do you do you
flip a chances are your broker doesn't
either you they he he or she certainly
doesn't know about it I mean who knows
what Advan what all these things are
with auto back planes and mega flops who
knows what all this so buy what you know
Buy in your industry buy what you know
buy local companies so suppose you you
don't have an industry I mean you know
you don't really well you buy local
companies companies in your own industry
10 years after WT went public 10 years
10 years after it went public it's a 25y
old company now right you could have
bought the stock and made 50 times your
money on it 50 times this if you bought
it 10 years after after it was public
already it already gone up fivefold so
you could have made 250 fold but I'm
saying let's say you were in town they
came into it and they said boy these
prices are great they're doing terrific
I like the bargains you checked it out
you spent a little bit of work on it
yeah I mean people are very careful they
when they buy a dishwasher they do some
research they'll put $10,000 in some
stock they hear on a bus so you a little
bit of research you say Walmart's only
10% of the country they're not even
saturated there why can't they go to the
rest of the country so is this this is
more of the same is it what it is it's
more the same plus I show examples it's
it's a a touch more detailed this
actually shows me an action I picked 21
stocks early in
1992 some work some don't I follow those
companies some of the companies the
fundamentals deteriorate some they
improve I watch those companies go
through the year I also explain the
retailing indust I try and make it very
simp and I talk about a wonderful
example is a seventh grade class yeah
the teacher of that read my book and my
first book that you were talking about
you you and I did a show on that in
Washington you remember that show this
is a long time ago she read the book and
I said if you made it through fifth
grade math you can do it in the stock
market she says okay she started
teaching it in seventh grade seventh
grade class these kids had to study
companies they had to look at their
balance sheets to see if they're solvent
and they pick stocks these stocks were
up 69% over two years when the market
was up only 20 they picked stocks like
limited they picked the Gap they pick
Walt they understood these companies
they also picked IBM I lost money on
that too I mean everybody makes mistakes
everybody did yeah but I'm saying this
is this was this was a school St agon
School in Arlington Mass but in addition
in the decade of the 80s there's 8,000
investment clubs these are amateur sort
of right average people just investing
these investment clubs 62% of them of
these clubs beat the market in the
decade of the 80s only 25% of
professionals beat the market let me go
back to one other subject you after
you're coming back to Fidelity aren't
you aren't you going to do something
when I when I finish this book I've been
working about one or two days a week the
last year and a half on this book right
now I'm done with the book I'm going to
go back to maybe one day a week working
with the younger analysts just listening
to them talking to them I'm not telling
them to buy zero sell lifestyle not
totally I'm not going to run another
fund 13 years was plenty of running a
fund I'm just going to work with younger
analysts let them ask questions I'll ask
them questions it's going to be a lot of
fun now do you still follow do you
manage any money for any other than
yourself no no manage I manage money
with other people for some Charities
right but no I don't manage anybody's
accounts you're not doing some mutual
fund some pension
fund turkey all right cold turkey did
you C turkey now are you happy you did
this I'm delighted it's great and you
like your new life oh it's fabulous
let's talk about the Clinton economic
plan what do you think of it well I
think his theories are excellent you
know we clearly which theories are
excellent well he claims that we're
going to do more investing and less
spending right and that statement you
can't argue with less consumption more
saving you absolutely have to invest
more in education you have to invest
more in companies you have to invest
Less in just spending money I mean today
people are encouraged to spend you spend
money let's say you put an addition on
your house you spend money on that that
you can get a tax deduction because
because the interest on it it's tax
deductible if you invest if you take
your money and put it in the bank you're
taxed at a very high rate they have this
incredibly unfair term it's called
unearned income when you every time I do
all income taxes
and I fill out the number for what you
made the money you put in the bank it's
unearned income what a it's it's an
insulting term but anyway if you if you
buy a stock and you make money on it you
pay a 28% tax on it yeah guess what the
capital gains rate is in Japan uh
Capital GES rate in Japan is 10% zero
zero right I mean we're not encouraging
people to save we're not encouraging
people to invest encouraging people
spend you're in favor of the elimination
of the capital gains tax that that bush
reducing it or eliminating and I'm glad
that Clinton didn't raise it I mean he
raised other tax
this fairness thing I understand and and
what about this tax the rich business
you you buy that I think fairness it's a
debate what's fair I think I certainly
think raising taxes is appropriate if
it's the same time you cut the spending
it's a lot easier to raise taxes than
cut spending if we can cut spending and
get government's share of the gross
national product reduced it'll be fair
but our country works very well it's
working extremely well I mean you just
don't want it to get spin out of control
you don't buy into the stimulus package
though don't buy into that at all you
believe that we don't need go out and
create jobs we've had eight recessions
since we're War Two we've got out of
every one of them this is number nine
there's nothing unique about the system
we'll get out of this one in the decade
of the 80s the 1980s we had 18 million
jobs in the United States yeah but but
soon as you say that as you know people
are saying yeah Peter but look what we
did when Ronald re came to the White
House the deficit was what $70 billion
6570 billion and it's approaching $350
billion and the amount of money that we
have to spend to pay off the interest on
that debt is saddling us and destroying
us and destroying I agree you're right I
I agree with that don't tell me how many
jobs we created 1980s because you can
always create jobs if you're willing to
no no that the government didn't create
that right the 500 largest companies in
the 80s eliminated three million jobs
eliminated 3 million and we added 18
million these 2.2 million businesses
started 2.2 million businesses started
in the ' 80s now some of them didn't
make it but if an average they have 10
employees today that's 22 million jobs
what the only thing that creates wealth
the only thing that creates taxes to pay
for all these wonderful things is jobs
there is something magic about jobs and
jobs come from companies starting that's
what I say small companies create jobs
right create all the jobs right so
that's what I'm talking this is not
voodoo economics this is the real thing
you have to encourage people to take
some risk to put their money out and go
start a business it's a risky
proposition and do that by what kind of
government policies other than a zero
capital gains or a 10% capital gains
lower interest rat what's the capital
gains at now 20 28% plus it's the
highest capital gains rate we've ever
had in the history of this country it's
never been this High I mean it's
terrible how high the capital gains rate
is that's not encouraging people invest
what you want you want to have lower s
you want to have lower interest rates
lower paperwork people start a business
now they have this much paperwork to
fill out on regulation they go crazy
that's crazy you got to cut that out
yeah oh well okay but then
people without those kind of regulations
then people would be creating dumping
into the rivers and and not protecting
the envirment these are regulations
protecting the health of their employees
I mean look what happened down in my
home state of North Carolina because of
you know the fire they had down there I
mean people say if you don't have some
kind of government regulation and
companies aren't doing their job to
protect their workers then this is not
the kind of society some of these
regulations relate to the size of your
paper clips I mean a lot of waste some
of his paperwork is mind and sometime
you could do it with one piece of paper
one that's it I mean that would be a
good polic I think Clinton it really
wants to make it work yeah the capital
system works obviously you want to
protect the consumer and and business
people Carri to extreme when the oil
Monopoly and the steel Monopoly that's
wrong too I mean I think trust should be
broken up there is a role for government
IBM what happened to them IBM had a
wonderful business they used to go to
companies like Fidelity Chase Manhattan
they used to come and explain to these
people how to use computers yeah they
didn't know how to use computers they
went to companies and went in with very
talented experienced people IBM and
explain to people how to use computers
today all these companies like Johnson
and Johnson's American Bristol Min they
have people in the company already that
know computers backwards and forwards
the same IBM people walk in with these
solutions they don't need all those
people so all these companies took IBM's
business away from them no no they do
internally they have experts internally
now that are trained in I it's called
now management information systems they
have all these fancy acronyms for it
they have skilled people all they want
now is software and a cheap box they
don't need all these so IBM was dealing
in a system that was very effective for
three or four decades now the technology
has moved to the chip the technology has
moved to the software it's not the box
it's not the storage so what should IBM
do what should this board of directors
of IBM which is looking for a new chief
executive officer what should they be
looking for I hear people saying they
ought to just Mort Myerson the number
two guy to Ross barow down there said
maybe they ought to dismember the thing
or maybe they ought to create all kinds
of little entrepreneurial companies from
within break it up they'll eventually
they have incredible technology they're
very skilled they have a lot of
determination right now unfortunately
it's sad they have too many employees
they have too many factories they try to
do it all themselves they're they're
they're working the right direction I
mean there's nothing wrong with the
direction they're going they will turn
it around they're in a hard process
because the technology is advancing all
the time what was the genius of Bill
Gates and Microsoft which now has a
higher net worth than IBM doesn't it
well he there a lot of bright people is
oh my God God his he his net worth alone
might be more than IBM's profits
I him individually yeah his Brilliance
as a lot of brilliant people and and a
lot of luck IBM adopted Ms Doss is the
operating system right they rushed the
market with the first computer they
needed an operating system and he had
the only one if they' waited a couple
years they could have used their own so
Ms became the basic operating system of
every computer whether it was a compact
computer the only computer system that
didn't use it was Apple Apple had their
own operating system so every computer
that went out there all over the world
needed MS DOS he uses used that to come
along with windows so he was there he
was like the the gasoline when people
whatever car if you had all if you had
if you had the rights to all the
gasoline you don't care whose cars or
said another way I mean IBM was making
all of these razors and and he was
making all the razor blades you got it
right yep absolutely and then there were
other people making razors to use his
his blades
exactly blades around no obviously he's
a bright person and and Rich yeah and
EDS EDS you know Ross per do you think
of perau I think he's a well-meaning
talented guy he's done a lot of good
things in education you vote for him for
president I did you did perau was your
guy y I sure did why well it was sort of
a protest vote because I know in our
state you know I mean in our state yeah
I knew in Massachusetts the Democrat was
going to win anyway and I really thought
his concepts of cutting down on the
deficit and more investment a cutting
down deficit is a good idea oh it's
absolutely a good idea it's a terrific
idea give me five good stocks to watch
watch not to buy but just to watch five
ideas that you think where people are
really on the right track and created a
good business not tting stocks America I
just want to know what Peter likes okay
well we have a company in Boston called
Oba pan it's a company that makes
croissants and they make Breads and they
have a state-of-the-art bagel they're
working on I can understand that company
too they're only in about 20% of the
country they're starting to roll right
now it's I think you know the price is
fully priced and I think now is the time
what it selling for what's fully priced
oh I mean it's 25 times next year's
earnings I me that's very high but I
think over a long period of time I'm
hoping the market goes down and the
stock will go down and I'm going to back
up the truck and buy a lot of shares I
think Now's the Time to look at cyclical
stocks I think the economy is going to
get better around the world in 94 it's
already getting better in 93 unit and
even better in 94 better in '94 because
right now it's slumping in Germany and
it's slumping in Japan so I think now is
the time to look at cyclical companies
in the paper industry the aluminum
industry the steel industry they've cut
the cost they're the lowest cost
producers in the world and when things
get better they're going to make a lot
of money what about little small
companies we should look at oh this tens
of thousands one small company well I
guess I'd say all pans the small on or
another one would be Jay Baker is a
relatively small they do it's a retailer
or Super Cuts they do haircuts that's a
small company Peter Lynch is back with a
new book called beating the street it is
always interesting to have him here uh
what up on Wall Street was one of the
better best sellers uh ever to about
Wall Street and it is very simple which
most things are very simple simple uh
and when you understand them you can
understand uh what makes the world work
I appreciate you being here thank sir
Browse More Related Video
Peter Lynch: How to Invest Better Than Wall Street (Rare Interview)
Peter Lynch On How To Beat The Market | 2019
"Outperform 99% Of Investors With This Simple Strategy..." - Peter Lynch
Warren Buffettβs Most Iconic Interview Ever
TJΓNA PENGAR PΓ AKTIER - Mina 5 bΓ€sta tips och rΓ₯d!
Jim Cramer: How compounding can help you double your money in 7 years
5.0 / 5 (0 votes)