📖Peter Lynch
Stomach Over Brain
Emotional fortitude matters more than intelligence in investing.
The key organ in investing is the stomach, not the brain. Everyone has the brainpower to make money in stocks. Not everyone has the stomach.
🏠 Everyday Analogy
📖 Core Interpretation
Peter Lynch advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：Temperament beats IQ in investment success.
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❓ Why It Matters
Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.
🎯 How to Practice
Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.
⚠️ Common Pitfalls
Having opinions without execution criteria
Reviewing outcomes but not decisions
Abandoning rules during volatility spikes
📚 Case Studies
1
Chrysler Near Bankruptcy (1982)
U.S. automaker faced severe losses, layoffs, and survival doubts amid recession and Japanese competition.
✨ Outcome：Lynch viewed pessimism as overdone, invested as turnaround began, and profited when restructuring and new models restored confidence.
2
Fannie Mae Interest-Rate Panic (1987)
Rising interest rates sparked fear that Fannie Mae’s mortgage portfolio would implode, hammering the stock.
✨ Outcome：Lynch bought during panic, believing earnings power was intact; as rates stabilized and profits grew, the stock rebounded strongly.
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