American investor, philanthropist, mutual fund manager, and author Peter Lynch has many titles. As the former manager of Fidelity Investments’ “Magellan Fund,” Lynch famously averaged a 29.2% return as the head of the group. As this return frequently doubled that of the S&P 500, Lynch’s fame grew by leaps and bounds as one of the premier financial voices in the United States. 

Boosting his credibility to Wall Street, during his time at Fidelity, Lynch grew the firm’s assets under management from $18 million to more than $14 billion, a massive increase, to say the least. After his 13-year run at Fidelity, Lynch wrote several books about “value investing,” including “One Up on Wall Street,” which has sold over one million copies. 

1. “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.” 

• Source: Peter Lynch, One Up on Wall Street

Takeaway: Maintain Your Discipline

This seems like an easy-to-follow quote from Peter Lynch that anyone hoping to retire one day should remember. Successful investing is rarely about following your gut instincts but more about knowing how to be disciplined so you don’t make emotionally poor decisions like panic selling during times of high market volatility. 

2. “The stock market’s been the best place to be over the last 10 years, 30 years, 100 years. But if you need money in 1 or 2 years, you shouldn’t be buying stocks.” 

• Source: Peter Lynch

Takeaway: Don’t Look For Quick Money

If there is one convincing argument that Peter Lynch likes to make that anyone looking to one day retire should consider, it’s that the stock market isn’t long-term. This is important as you need more than just a year or two to make significant enough returns to impact your lifestyle significantly. In other words, if you plan to retire in five to ten years, now is the time to invest in the market. 

3. “I’m always on the lookout for great companies in lousy industries. A great industry that’s growing too fast, such as computers or medical technology, attracts too much attention and too many competitors.” 

• Source: Peter Lynch, Beating the Street

Takeaway: Look For The Opportunities 

It won’t come as a surprise that some of the best investments are not big names like Apple, Microsoft, or Google. As Lynch points out, you should invest in great companies in struggling industries, which can lead to better overall returns than just looking for DOW or blue chip stocks. The biggest idea from Lynch may be the businesses that are thriving even in industries facing challenges. 

4. “People go to the library and they do incredible research on a microwave oven. And then they’ll go out and spend $10,000 on a stock because they heard a tip on the bus.” 

• Source: Peter Lynch

Takeaway: Do Your Research

As someone who can spend days researching almost everything I purchase, Lynch is 100% correct with this quote. If you’re going to take the time to study something mundane, then why don’t we go through the same process before buying a stock? This should be a lesson to anyone hoping to retire, as you don’t want to make bad investments. 

5. “If you don’t understand a company, if you can’t explain it to a 10-year-old in 2 minutes or less, don’t own it.” 

• Source: Peter Lynch

Takeaway: Only Buy What You Understand

It won’t come as any surprise to see an accomplished investor like Peter Lynch stress the importance of only buying the stocks of companies you understand. You shouldn’t worry about complex companies in fields or making products you don’t or can’t understand. This is an easy way to make a poor investment, lose significant money, and feel more stressed. 

6. “People who exit the stock market to avoid a decline are odds-on favorites to miss the next rally.” 

• Source: Peter Lynch

Takeaway: Don’t Try To Time The Market

If you’re hoping to retire one day, one of the worst things you can do to make a significant return on your investments is to try and time the market. Some people spend decades trying to master this idea and fail every time. For the average investor, you have to remember that rebounds can happen quickly and are often unpredictable, which means you could easily miss the next bounce, where you could make all of your money back and then some. 

7. “If you can’t find any companies that you think are attractive, put your money in the bank until you discover some.” 

• Source: Peter Lynch

Takeaway: Don’t Invest Just For The Sake Of Doing So

One of the most important lessons anyone remotely interested in stock market investments should know is that investing just for doing so is a quick way to lose money. If there isn’t an immediate investment opportunity you are interested in, the smart move is to do nothing at all. Rushing into any investment opportunity without careful consideration is an easy way to wind up regretful and out of money. 

8. “If you own stocks, there’s always something to worry about. You can’t get away from it.” 

• Source: Peter Lynch

Takeaway: Invest With Caution

It’s safe to say that investing in the stock market isn’t for everyone. Everyone’s risk tolerance isn’t the same, and investing in things like treasury bonds or CDs might be safer overall for some people. If you invest in the market, you have to do so with the understanding that worrying comes with the territory, as you can’t predict how the market will react today, tomorrow, or anytime in the future. 

9. “Avoid long shots. I’ve bought about 30 long shots in my life. I’ve never broken even on one.” 

• Source: Peter Lynch

Takeaway: Skip Risky Opportunities 

This is a straightforward quote from Peter Lynch, who bluntly states that you should skip the long shot. The longshots rarely pay off, and for anyone who hopes to retire one day, the last thing you want is to see some of your hard-earned money go down the toilet because you thought you had a get-rich-quick idea with a stock price that someone promised would be shooting to the moon real soon.

10. “You need to know the market’s going to go down sometimes. If you’re not ready for that, you shouldn’t own stocks. And it’s good when it happens.” 

• Source: Peter Lynch

Takeaway: Market Downtowns Are Inevitable

As seems to be a theme among many of Peter Lynch’s quotes, there is a common notion that the market will go down from time to time. There is a reason why the world knows exactly what a bear and bull market is. However, instead of fearing a decline, savvy and disciplined investors will look to buy quality stocks at lower prices, and these investors will be retiring early on. 

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