Peter Lynch (born January 19, 1944) is an American investor, mutual fund manager, and philanthropist. He managed the Fidelity Magellan Fund from 1977 to 1990, achieving an average annual return of 29.2%, making it the best-performing mutual fund in the world during that period. Lynch is famous for his "invest in what you know" philosophy, encouraging individual investors to use...
"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."
Emotional fortitude matters more than intelligence in investing.
Read Full Analysis →"A decline of 10% is a correction, a decline of 25% is a bear market, and a decline of 50% happens roughly once every generation. None of these should cause panic."
Market declines are a normal part of investing.
Read Full Analysis →"If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes."
Macroeconomic forecasting is largely useless for stock picking.
Read Full Analysis →Peter Lynch has 3 key principles on market psychology. The most important one is "Stomach Over Brain" — The key organ in investing is the stomach, not the brain.
Peter Lynch applies market psychology through several key principles including "Stomach Over Brain" and "Corrections Are Normal". These principles guide practical investment decisions and have been tested across decades of market cycles.
Peter Lynch's approach to market psychology is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Peter Lynch provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
