Peter Lynch's #1 Rule for Investing Success

Рет қаралды 121,279

Күн бұрын

Peter Lynch ran the Fidelity Magellan fund for 13 years, and averaged annual returns of 29.2%. In this video we break down his most famous investing mantra to learn how he was able to consistently pick amazing stocks throughout his entire investing career.
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DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

Пікірлер: 180

@FluentinFinance 3 жыл бұрын

Peter Lynch is a legend. He always says your best research tools are your eyes, ears and common sense. He said some of his best stock ideas were discovered while walking through the grocery store or from talking with with friends and family.

@Yellowgary 3 жыл бұрын

Dude you are everywhere I see you all over Reddit too

@sdtimeless 3 жыл бұрын

He genuinely has talent as a stand up comedian.

@NewMoneyYouTube 3 жыл бұрын

haha agreed :D

@juanjara6338 3 жыл бұрын

I love his book its simply brilliant

@sempressfi 2 жыл бұрын

@@juanjara6338 agreed, my husband and I listened to it and were pleasantly surprised that it is full of humor as well as valuable advice and insight

@juanjara6338 2 жыл бұрын

@@sempressfi im pretty noob at investing but his advice, just took me ahead to begin now, im 34, but i hope in 10 years i could say all worked just fine

@sethjoseph7027 3 жыл бұрын

Peter Lynch has always pushed and advocated for people to take up investing as a hobby. He was one of the few people who grew my fascination for the stock market. Though the journey hasn't been an easy one with small wins and big losses, I am so eager to learn how to be consistently making profits.

@fidelnoah9147 3 жыл бұрын

As Warren once said, "Be fearful when others are greedy, and be greedy when others are fearful". Making consistent profits requires some guts, and most especially trading experience.

@xiamurren9200 3 жыл бұрын

Join the pump and then dump at the right time. But knowing that best time to join in the pump is the issue, so I would best advice you seek a financial consultant with years of experience and a large portfolio.

@jacobrowe865 3 жыл бұрын

I have had my fair share of having more losses and less wins, and I know that it can be really frustrating. I started trading with my financial consultant late September last year, and so far we have been able to accumulate earnings rising above half a million, all with an investment of just $135,000.

@ottoalfred4889 3 жыл бұрын

You basically just have to do your research and devise reliable trading strategies.

@shanonbase3321 3 жыл бұрын

@@jacobrowe865 That's massive. Can you please connect me with your financial consultant, I would love to work with the person.

@colinalopez7650 3 жыл бұрын

Investing is how you create wealth, I started investing from the pandemic

@MoneyMindsetM 3 жыл бұрын

The key to making money in stocks is not to get SCARED out of them! - Peter Lunch!

@justinsjackson 3 жыл бұрын

You’ve built a great channel here. Most every other finance/investing channel is putting out some serious misinformation and fueling the gambling epidemic that’s going on in the market. Thanks for not being a shit bag haha

@NewMoneyYouTube 3 жыл бұрын

You're welcome. If I ever put out a video that sounds like what they do, please call me out on it.

@kristoferkraani4303 3 жыл бұрын

I actually just finished the book "one up on wall street" a few hours ago, really great book.

@wm6739 3 жыл бұрын

That's a great analogy about the computer, but I think it's much easier to learn about computers than it is to learn about the stocks you own, because everyone knows where to go to research computers, but it's not always obvious exactly where to go to research in depth about companies

@InTheMoneyAdam 3 жыл бұрын

Love this video and your channel!

@dylantrudgett1779 3 жыл бұрын

Great video as always, KZfaq needs more financial advice like yours.

@stevenlong7486 3 жыл бұрын

Greetings from Arizona. Really enjoy the channel and this video. Keep up the great work!

@jasonstupak4535 3 жыл бұрын

Watched and liked, thanks!

@debonairpandabear4698 3 жыл бұрын

Great video! Thank you.

@SomeIdiotDrifting 3 жыл бұрын

Man I wish I saw this when I started a year ago, woulda been very good information! Isn’t it crazy how easy we buy stocks we know nothing about, I think it’s mainly because it’s an impulse very similar to gambling! Peter is a super cool dude, I’m definitely going to read One up on Wall Street!

@aslanjwb 3 жыл бұрын

Love your videos man, keep up the hard work

@NewMoneyYouTube 3 жыл бұрын

Thanks Aslan :)

@thesafeinvestor37 3 жыл бұрын

I love is quote,” Don’t invest in anything if you can’t illustrate it with a crayon” 🖍 I did it myself, and it works

@KelechIwuaba 3 жыл бұрын

I needed that reminder of good businesses will be around and there no need to rush into the investment

@nithiyanandamravindran7113 3 жыл бұрын

Absolutely brilliant channel.👍👍👍👍👍👍❤️❤️❤️❤️

@robstrong5624 3 жыл бұрын

Since covid started I discovered Phil Town and you at the same time as I learnt watched I compiled a watch list 10 companies ! Got a couple of brokerage accounts been hard to find any of my list on sale or with margin of safety but I've learnt a heap ! Thanks alot to you Brandon

@NewMoneyYouTube 3 жыл бұрын

Yeah it's very hard to find decent companies at good prices in this environment. I feel you! Cheers Rob :)

@colbyhaan3352 3 жыл бұрын

Hey man, I'm a huge fan of your videos. I was wondering about the "circle of competence" idea. I'm an engineer working in the automotive industry and I'm very up to date on auto news. This would be my circle of competence. My fear is if the auto industry sees a downturn, not only do my stocks crash, but also I may be out of a job. Wouldn't it make more sense to invest in my other interest areas, to diversify my finances in the event I see auto industry downturn?

@michaeldawn442 3 жыл бұрын

Heard this before many times, but it doesn't hurt to hear it many more times..

@detectiveofmoneypolitics 3 жыл бұрын

At 67 years old still learning the markets

@flyinghigh2504 3 жыл бұрын

Thanks man. Very well articulated. Am building a portfolio and am glad that I saw this video.

@sophiamonique3603 2 жыл бұрын

Any tips for building ur first portfolio?

@ryminvesting6554 3 жыл бұрын

Very useful advice.

@TheKdcool 3 жыл бұрын

Is this a re-upload? I feel like I've seen it already!

@jccarvajal8053 2 жыл бұрын

simple and useful idea

@absolutebosscollective8202 2 жыл бұрын

Thanks!

@intellectualdarkweb236 3 жыл бұрын

I needed this

@ivailoruikov5558 3 жыл бұрын

GR8! Thanks.

@florin9868 Жыл бұрын

very good exemple about laptop vs stock research.

@tendergreenheart6793 3 жыл бұрын

Thank you 🙏🐉🍀💚

@matthewferguson6512 3 жыл бұрын

I read rule 1# investing on your recommendation and absolutely loved it. I am currently unsure how I go about researching companies since the books instructions on yahoo didn't seem to work in Australia?

@TheTale28 3 жыл бұрын

I concur on Rule#1 ,this guy opened my eyes to value investing . I am actually valuing stocks using both Yahoo Finance and MSN as the book guides . I also use data from commsec and the Rule one calculators I am valuing stocks .

@sandro-nigris 2 жыл бұрын

Nice analysis of Peter Lynch (great investor!)

@theonewhoknocks2835 3 жыл бұрын

great advice

@seanphillips6622 2 жыл бұрын

Great video

@duttontube 2 жыл бұрын

Brilliant video. Explains why I am confident in tech stocks, because I've worked in the industry for 20 years and understand the growth across cloud and advertising. Most people wouldn't have the experience to understand the long term growth. Happy to answer your questions on tech companies 🤓

@Chris-ey7zy 2 жыл бұрын

Tech stocks eat each other

@MrMinkey11 3 жыл бұрын

The golden rules to success!

@altravels7426 3 жыл бұрын

Good shit bro

@NotnaRed 3 жыл бұрын

Anyone knows where I can find the original article

@Partytime60 3 жыл бұрын

I was trying to find best investments strategy and luckily I found Peter lynch a month ago. things I could not download this book 'one up on Wall Street' I am listening to the audio and writing down the main points. I would like to thank Peter Lynch for not keeping his investment strategy secret...

@charleswoods5516 3 жыл бұрын

Simplicity is the best protocol!

@Ggsingslistfave 3 жыл бұрын

I like how you did your hair today it suits you well

@thebes56 2 жыл бұрын

Bought pennies in the 90's when it was hard to find info on OTC's. Now it is much easier to do DD

@wc3815 3 жыл бұрын

1. Learn and really know the business. 2. Its better to take the time to understand the stock you are buying, rather than buying and learning afterwards. 3. Circle of competence. Lead towards areas you understand and have interest.

@wintervegetable 3 жыл бұрын

Loved this video. I’d love to hear the failing Motley Fool pick though

@maxmustermann5369 3 жыл бұрын

Nice monitor stands

@sanjivb53 3 жыл бұрын

Pure Gold at 2:10 "If you can't explain to a 10 year old in two minutes or less, why you own a stock, you shouldn't own it"

@JosephDickson 3 жыл бұрын

Peter Lynch talking hardware reminds me of Star Trek Voyager's techno-babble... (Worse, I understood the jargon.) I prefer index funds because I'm skeptical of my understanding of individual stocks. It's very easy to justify a purchase. I own 4 shares in a single stock I believe I understand. If that pays off this time next year maybe I'll have learned something and move on to a few more.

@VeveIndian 2 жыл бұрын

If only it was this easy..can good products knowledge really translate to future earnings

@toodle171 3 жыл бұрын

Great video! I don't EVER go on Motley Fool advice. They are self admittedly a publishing company only. Peter Lynch is the only self-effacing leading investor I know.

@Gotiges489 3 жыл бұрын

1) aussie 2) informed 3) smart ====> SUBSCRIBED

3 жыл бұрын

I like that new hairstyle, haha.

@Investingforthe99Percent 3 жыл бұрын

One up on Wall Street - such a great find. Took me years to figure out how to invest, and in the end, I ended up using something similar to his strategies!

@adityapatnaik6079 3 жыл бұрын

nice music to end the video

@robstrong5624 3 жыл бұрын

I like the new hairstyle mate bit of Gordon Gekko

@NewMoneyYouTube 3 жыл бұрын

It's JUST long enough to tie up now. Man it's annoying to grow out your hair...

@vignesh.n7744 3 жыл бұрын

Did you see spam

@deesee6009 3 жыл бұрын

Great advice!

@o8o8o85 3 жыл бұрын

Hello Man , love the content!

@NewMoneyYouTube 3 жыл бұрын

Thanks!

@carolynrose1816 Жыл бұрын

personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!

@sherryie2 Жыл бұрын

Currently, my primary worry is how to increase revenue during periods of quantitative easing. I cannot afford to witness my savings dwindle away

@laportafrank Жыл бұрын

@@rickertcoles How do I Meet this Lady?

@laportafrank Жыл бұрын

@@rickertcoles Thanks for the info, i found her website and sent a message hopefully she replies soon.

@momchilandonov 3 жыл бұрын

1:20 a 4th major reason - major funds can't invest in small companies!

@ida4587 2 жыл бұрын

We can't really get out of positions when we want, unless we have 25k or more on a margin account or we have a cash account with a lot of cash. The PDT rule makes it very very difficult to have a one up on the market if you are starting with less than 25k, thus adding a steep price to enter the market and stay alive. After reaching 25k multiple times via options and stock purchases and then losing the ability to day trade I have found it is extremely difficult to make money in the market. Swing positions don't work with a small account (naked calls or puts and buying stock). The only other way to make money would be to implement very complicated options strategies for sideways markets (like iron condors and butterflies). The other option is to buy on extreme dips and wait years and years to get your ROI.

@pdpiper 3 жыл бұрын

His book is great

@eddyla00 3 жыл бұрын

I think the most common problem is that people tend to go for stocks with anticipation that it might go up asap.....so the neglect the research in favour of quick bucks. Basically they 'bet'. Like all betters, you hope luck is on your side.

@tedeaston7285 3 жыл бұрын

Great video but surely you could add understanding a company and a common sense approach. I don’t understand how to make a lithium battery but common sense tells me there will be more EVs on the road and there is a finite amount of lithium. My lithium mining company is one of my best performers. Just a different perspective.

@ChristySu 3 жыл бұрын

Love Peter Lynch and his speeches. His work really helped me with my investing mindset.

@739jep 3 жыл бұрын

Quality video as always! I gotta say I’m not overly impressed with Peter Lynch’s performance with the Magellan fund. He took over the fund in 1977 and left in 1990. That is an unbelievably lucky time to start and finish - and besides that 13 years isn’t long enough to make an assessment on skill vs luck. He also invested in smaller value companies , which we know are riskier. (Fama and French) He may have outperformed the S&P 500 simply by being exposed to extra risk during a bullish market. His advice seems to recommend market timing. Which i think is bad advice. Time in the market beats timing the market. He also seems to assume that the market is particularly inefficient at factoring in new information , which I disagree with.

@Carrandas 3 жыл бұрын

"He also seems to assume that the market is particularly inefficient at factoring in new information , which I disagree with." I agree with that though, certainly the parts in the market where he says you have an advantage: the smaller companies which have no or maybe two analysts covering them.

@739jep 3 жыл бұрын

@@Carrandas maybe this occurs sometimes, but I don’t think it happens often enough that you could trust that you will find yourself such an opportunity. At least not consistently enough throughout your lifetime. If these opportunities existed to the degree it was statistically significant the data should reflect it, and although nothing in finance can be proven completely the weight of the evidence seems to suggest markets do a good job of pricing in information - at least most of the time. Yes that includes small companies with no analysts. Probably because computers and algos run the show these days anyways. I don’t think the markets are perfectly efficient , but they’re efficient enough that we should invest as if they were. I’d recommend reading a paper by Eugene Fama and Kenneth French called ‘luck vs skill in the cross section of mutual fund returns’ it has some interesting insight on this topic.

@Carrandas 3 жыл бұрын

@@739jep If the market is efficient, you can just as well buy an index tracker. Even if the market only gets it wrong from time to time, you only need a few of those in a lifetime. Just look at the batshit insane deals you got a year ago.

@739jep 3 жыл бұрын

@@Carrandas yeh and you probably should just buy an index tracker. It’s not a question of ‘if’ the markets are efficient. Perfect market efficiency is a theoretical state that can only be approached. The important question is ‘how’ efficient markets are. Pretty much all the evidence we have , beyond the anecdotal, suggests the markets are efficient enough that we should behave as if they were perfectly efficient even though they’re not.

@Chris-ey7zy 2 жыл бұрын

He beat other money managers like himself besides s&p

@joze838 3 жыл бұрын

It's no critique, I just thought it's a bit ironic: You: You never need one TB of space on your computer. Me - working with 3D-models: I need delete some data because I floated my 1 TB in just 3 month. You: You run into great stocks every day. Me looking up every high-tech maschine's company I ever worked with (a lot of shit from GCs to electron-microscopes) - everything is owned privatly. In this regard, you are way better of if you work in private markets.

@investinstyle-financeinves1181 3 жыл бұрын

That Halloween tie is epic.

@tradrlarryone1827 2 жыл бұрын

I don't know why Peter Lynch makes me laugh I swear I don't know if he's trying to be funny cause he maintains a straight face but I swear it's hilarious how he's just so blunt when he talks about the stock market.

@dexterhatchet3529 3 жыл бұрын

if everybody followed that rule, space / tech / semiconductor stocks would be the most unpopular stocks on the planet... everybody would buy Dunking Donuts

@mayukh4180 3 жыл бұрын

Peter Lynch is a Darkhorse Guru for Retail Investors

@vignesh.n7744 3 жыл бұрын

Spam shit

@Carrandas 3 жыл бұрын

You could have bought Microsoft the day he was interviewed and 50x'd your money by now...

@ThePunjabWay 3 жыл бұрын

GOAT

@davidreichert9392 3 жыл бұрын

Motley Fool is the most appropriately named site on the web

@kylere6288 3 жыл бұрын

Nicely done - but there’s an awful lot of observer bias in this thinking. Would be useful to your viewers if you discuss your due diligence decision making process. Keep up the great work!

@michaelsmith4904 3 жыл бұрын

I read that list of questions and that still doesn't suggest any competence I might have that would give me this "edge" that Peter Lynch claims we all have. I feel like I need a financial therapist to talk to... Also, if you have no edge, are you supposed to just not invest? Watching your savings bleed to death via inflation?

@GG-qx5uc 3 жыл бұрын

Not confident? Index funds are a good shout for you. Take a balanced position across many markets, generally will outperform the vast majority of actively managed funds at a fraction of the cost. Little to no time investment needed on your part.

@Partytime60 3 жыл бұрын

Dunkin donut is still kicking ass and now beating starbuck...

@iValueInvesting 3 жыл бұрын

Plenty of time to buy stocks..

@PUGSLTD 3 жыл бұрын

The only stock in my portfolio that's making me nervous is TESLA..... I own 18 stocks from 7 different fields that I know but the TESLA is the one that scares me the most 🤔

@NewMoneyYouTube 3 жыл бұрын

I can understand that. I was feeling a bit like that but decided to hold TSLA ultra long term.

@goatface6602 3 жыл бұрын

Why? At current earnings it will have paid for itself in a little over a THOUSAND YEARS.

@Carrandas 3 жыл бұрын

You can always take some profits and let the rest run (assuming you bought it a while ago).

@mofojohnson1 3 жыл бұрын

@@goatface6602 I'm not a share holder but if it's earnings double next year then that argument is bust straight away, this way of thinking clearly doesn't work in catching many multi baggers

@ahmedelkheidr5076 3 жыл бұрын

@@mofojohnson1 Well Peter lynch in his books warned a lot about stocks like Tesla, it’s great company but people is just expecting impossible amounts of earnings growth. So you know that Tesla has above 1000 P/E ratio so it means for Earnings to become even close to that and break even if your investment, there earnings has to grow x100 which is impossible, Tesla in their last earnings made $700 million , and a revenue of $31.5 billon, so that is almost 2.3% margin which is normal margin in the industry, so basically Tesla will need to make $70 billion in earnings and almost $3 trillion in revenue (11% of USA economy) which is easily impossible to make, so I think Tesla is all about hype and Elon musk and EV that will take over the industry which it will but there is dozens of other players in the industry. Maybe I am wrong after all I am more of a value investor myself is just how I look at stocks. Just don’t believe in the hype and good luck.

@Kennedy-my8ez 3 жыл бұрын

Diversification is the way. Most people pay more attention to the shiniest positions on the graph to the cost of proper diversification, making investing look a lot more difficult. Having monitored my portfolio performance smashing a huge 6 figure raw profit from the last 2 quarters, I have learned why experienced traders make enormous returns from the seemingly unknown markets.

@kevincarrington4601 3 жыл бұрын

Hey bud, I find myself in a fix right now. I have a lump sum of around $600k sitting in a savings account doing absolutely nothing at all. I wanna get something started with it but I need guidance on where and how. You seem to be doing excellent for yourself. I could use some help here.

@Kennedy-my8ez 3 жыл бұрын

@@kevincarrington4601 Algorithmic trading. I have my funds well diversified and I'm more of the aggressive style. But I don't make these picks myself. I use trade signals from my investment advisor Monica Sullivan Javorcic a US regulated broker.

@detectiveofmoneypolitics 3 жыл бұрын

As a Private citizen I have put you on my KZfaq channel cheers Frank and Julie G Melbourne Australia 👌

@guantingliu1667 3 жыл бұрын

Did you gain weight or muscle? Confusing

@JBulsa 3 жыл бұрын

Edge: BNGO $

@almabe7608 2 жыл бұрын

I guessed we were to take advice from him about dress attire. 😂

@george5120 3 жыл бұрын

We don't need this guy's commentary. Just let us listen to Peter Lynch.

@evaeva-ju5pd 3 жыл бұрын

Best advice was not to rush.

@viirusiiseli 2 жыл бұрын

"If you can't explain to a 10-year old in two minutes or less, why you own a stock, don't own it." This is why I only own Domino's Pizza stock and nothing else.

@avishkaravindu7853 2 жыл бұрын

❤

@ryanphelps9943 3 жыл бұрын

you're got a imitator spamming your comments section. see the replies.

@tsachibenshoshe7808 3 жыл бұрын

Has anyone told you you look like Josh Homme's brother?

@MarcoAshford 2 жыл бұрын

Speaking of Netflix. It just crashed down lol. Streaming is never the future, people still need to go to theater to watch for the experience of it. AMC to the moon!

@greecemobile7610 10 ай бұрын

yeah sure...

@droolalot5795 3 жыл бұрын

Let's see this portfolio. Grant Cardone junior

@wanjoe2057 3 жыл бұрын

lynch: i made money in dunkin donut people:hahahahaha lynch:i made 15 times of money there people: -----------------------------

@furmanodell 3 жыл бұрын

Peter Lynch is the best. Maybe even better than Warren Buffett.

@jinnaperusich3317 3 жыл бұрын

The rich invest their money first into assets instead of purchasing liabilities. Take a wise decision today to buy and invest in cryptocurrency

@davidagin1827 3 жыл бұрын

Discipline!? Grrrrr.

@schmitt_happens1558 3 жыл бұрын

like your videos but it starts to get repetitive...

3 жыл бұрын

Are you German by any chance? Just wondering because of your name.

@schmitt_happens1558 3 жыл бұрын

@ yes I am. Do you ask that every user with a German sounding name? Just wondering...

3 жыл бұрын

@@schmitt_happens1558 Just stumbled upon your comment and wanted to ask which German investing-related YT channels you recommend.

@schmitt_happens1558 3 жыл бұрын

@ Hab mehrmals versucht zu antworten. Wird irgendwie geblockt :(

@schmitt_happens1558 3 жыл бұрын

I am.pretty sure that my comments are getting deleted....unsub is the consequence

@TIMVESTMENTS 3 жыл бұрын

I actually feel like the secret Lynch formula is to pick ultra high beta stocks at the bottom. Of course the company itself has to be high quality too

@infintecatvids8860 3 жыл бұрын

So deep value stocks?