What’s up Everybody! DeRiso here for another episode! Recently, the stock market has crashed. Volatility levels are very high and discussions about a recession or even a depression have hit news headlines. | Add me on Instagram: michaelderiso
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Email: mrzerotoinfinityquestions@gmail.com
The man on your screen is Peter Lynch. He is known as one of the greatest investors of all time. He was the manager of the Magellan Fund between 1977 and 1990. During his 13 year tenure, assets under management increased from $18 million to $14 billion. Lynch was a legendary stock picker and averaged a 29.2% annual return which was more than double the performance of the S&P 500.
Peter Lynch gave a lecture back in 1994 with timeless tips for investors looking to multiply their money in the stock market. If you’re like me, I always like to learn from the best especially a multi millionaire with tons of knowledge! During the lecture, Lynch discussed his core investing principles. This episode will include 11 tips from Peter Lynch and his viewpoints on recession headlines and concerns about extreme levels of volatility in the stock market. Lynch’s secrets to success can be applied at any time in the stock market.
11 Tips from Multi-Millionaire Investor Peter Lynch during a Recession and Extreme Stock Market Volatility
Tip 1: Market volatility is terrific and a great opportunity for investors, but not good for the public.
Market volatility is when the stock market rises and falls more than one percent over a sustained period of time.
Let’s listen to Peter Lynch’s answer back in 1994 explaining why value investors should embrace volatility.
Tip 2
Investing in the stock market is not that complicated. No one can predict the stock market or economy.
In this clip, Lynch explains no one told him about a recession.
Tip 3
Facts are relevant to investing. Economic predictions are a total waste.
In this clip he explains the facts he looks for in the auto industry, hotel industry, chemical industry and the list go on.
Tip 4
Learn from history…the market goes down. Take advantage of market volatility and stock declines by investing in companies you understand.
Tip 5
Patience. You have plenty of time when you have a long term outlook on investing.
Lynch explains there shouldn’t be a rush in buying a stock. He goes over two investment opportunities in Walmart and Microsoft back in the day.
Tip 6
Know exactly what you’re buying and why you’re buying a stock at all times!
Tip 7
Price discounts do not mean you should buy a stock!
Here’s a brief rundown of a 3 dollar stock and Lynch explains price alone doesn’t mean you should buy it.
Tip 8
You don’t have to be right with every stock investment.
If you put $1,000 in a stock, all you can lose is $1,000. But if you’re right, you can make $5,000, $10,000, $20,000 etc.
Lynch goes over a story that he was playing golf during the 1987 stock market crash and there was nothing he could do at that time. He then explains when you’re right on an investment, the stock market allows you to multiply your money on the upside.
Tip 9
There’s always something to worry about!
In this clip, Lynch goes over concerns of war, oil prices, debt loads, and all lead to predictions a recession or the next depression or Great Depression or the Big One is coming.
Tip 10
When it comes to investing in the stock market, your stomach is more important than your brain!
Tip 11
Long term, the stock market’s a very good place to be.
Everybody in the world is a long term investor until the market goes down. Here’s his response to: What am I going to do when the stock market goes down?
And there you have it, 11 tips to that I will be applying during a recession and extreme levels of stock market volatility.
As I do in every episode, here’s a quick portfolio update. If you’re new, I created this channel to consistently track, share, and document one of my stock portfolios and the journey from $0 to Infinity! I’ve been investing for 10+ years now, and I believe investing in the stock market is one of the easiest paths to financial independence. I mark my progress in each youtube thumbnail. By the time you know it, you’ll notice my thumbnail balance will be much higher in the future than it is today!
To recap, I currently own stock in Apple, Fiverr International, Penn National Gaming and Starbucks. I have discussed my reasoning and investment mindset for buying these four stocks in previous episodes.
As always, do your own research prior to making any investments. Read the disclaimer on your screen fully. Remember all opinions in this episode are mine and mine alone. I’m not a financial advisor and this video is for entertainment and informational purposes only.
I appreciate your time for this episode! Thanks for watching!
Let’s keep building from $0 to Infinity!
Peace!
Sources:
Jun 6, 2015 |
