investor peter groveKnown for its 13 years of management excellence FidelityMagellan Fund recently said he has never explicitly advocated investing in the stock market.
what happened: Lynch, author of the influential investment book “One Up On Wall Street,” clarified his stance on stock market investing in a discussion with Yahoo Finance.
In the interview, he emphasized that his goal is not to encourage stock market investment, but to provide guidance on how to invest correctly for those who decide to invest.
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While leading the Fidelity Magellan Fund from 1977 to 1990, the fund achieved an average annual return of 29.2%, making Lynch a well-known figure in the investment community. His slogan “Buy what you know” sums up his straightforward approach to investing.
Despite his achievements, Lynch stressed that investing in the stock market is not a game. He expressed concern about people’s lack of caution when investing, often investing large sums of money in stocks they heard about in casual conversations without conducting thorough research.
“You don’t play the market. Maybe I don’t emphasize that enough in the book. It’s important to point out that I don’t say invest in the stock market. So the reason I wrote One Up On Wall Street is to help people who want to invest. ,” he said.
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Lynch also pointed out that although data is more accessible now than 35 years ago and transaction costs have decreased, this does not mean that people should become traders. “That’s not investing. That’s gambling,” he commented.
“You know, buy three stocks every day, sell three on Friday, and buy three more next week. That’s not investing. That’s gambling,” Lynch added.
For those considering investing, Lynch’s advice is to understand the company’s story, monitor the fundamentals, and follow the story. He also recommends creating a $100,000 paper portfolio of at least 10 stocks to test your investing skills before committing real money.
