Peter Lynch: Secrets to Picking Stocks in 2021 - YouTube

Point is would you say to yourself  do I need this money in a year  

do I need this money in two years,  do I need this money in three years,  

so, my longer term stock market's been the best  place to be last 10 years, last 30 years, last  

130 years. But if you need the money in one  or two years you shouldn't be buying stocks.

In the stock market the most important organ is the  stomach. It's not the brain there's always  

on the way to work, the amount of bad news you can  hear is almost infinite now. So the question is: Can  

you take that? I mean do you really have faith that  10 years, 20 years, 30 years from now common stocks  

are the place to be. If you believe in that, you should  have some money in equity funds. I mean it's a  

question of what's your tolerance for pain. I mean  the stock market's a very good place to be. But  

I could toss a coin now it's gonna be lower  two years from now, higher I don't know.  

More people lost money waiting for corrections  and anticipating corrections than in the actual  

corrections. Well you ought to look in the mirror  every day and say what am I going to do, if the  

market goes down 10 percent. What do you do if it  goes down 20? Am I going to sell? Am I going to get  

out? If that's your answer you should be reducing  it today. Well hey, this perfect record I think the  

13 years I ran Magellan the market went down 9 times 10% or more. I had a perfect record I went  

down more than the market. Every time it went down, I  went down more so I just didn't worry about it.  

The point is, would you say to yourself do I  need this money in a year? Do I need this money  

in 2 years? Do I need this money in 3 years?  Longer term, stock market's been the best  

place to be last 10 years, last 30 years, last 130  years. But if you need the money in 1 or 2

years, you shouldn't be buying stocks. You should  be in a money market fund. Well I think emerging  

markets that's not my expertise. But I mean these  markets have been really hammered. You know and  

they're a lot of countries are doing a lot better.  You know I mean so i think there's potential  

there that's not my expertise. But I think  emerging markets could be a place to research.  

I never looked at the economy. The only I look at what's happening right now.  

You know what's going to happen a year  from now? what's going to happen on interest rates?  

I'd love to get next year's wall street journal. I  pay an extra dollar for it, that'd be very helpful.  

I don't know what's going to happen in the  future, but I want to find right now.  

Well, I think anybody that's investing in the  stock market -inaudible- you buy a company.  

These are not lottery tickets, Behind every  stock there's a company, if the company does well  

over time, the stocks do well and vice  versa. You have to look at the company  

that's what you're researching. That's  what we do at Fidelity that's what I do.  

You could be an interventional cardiologist and you put in a heart pump. You say, wow, this  

really is an incredible breakthrough, preventing  shock, preventing you know hemodynamic support. It's  

amazing, it's a breakthrough it's great  it works. But you you're actually using it i mean  

or you're you're assisting you're in the operating  room seeing this breakthrough. That's you know you  

start way ahead of most people that's an edge, you  need an edge on something. Well the data now is  

so good. I remember when nike, we own nike, we had  to wait for the mail to come to our library. Now  

when somebody reports earnings. It's telecast all  over the world. They have an investor presentation,  

they show a balance sheet, so information is  much better. So, theoretically the individual's  

edge has improved in the last 20-30 years versus  the professional. The data is there it's free.  

Well, I think a lot of people the problem is, they  have so many prejudices, there's so many biases,  

They won't look at a railroad, they won't look an  oil company, they won't look at a steel company, you  

know they they're only going to look at companies  growing 40% a year. They won't look at turn-arounds. So  

one thing you just don't have so many prejudices and biases I bought companies with unions. You  

have to really be agnostic and a lot of people  they're just not flexible. I think flexibility is —  

and that's why fidelity had so many great fund  managers. They're very flexible what they'll look at.