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"The bottom line is that you are supposed to be investing for the long run. Historically stocks have provided the best returns, by far, over time. That includes riding out the highs & lows of the market."

I'm with you on this one. I'll always give far more credence to those who have proven themselves over the long-term, rather than to those self-appointed know-it-alls with nothing more than an opinion to share and who's mind is only able to focus on the short-term.

What follows below is food for thought from one of the most successful investors of our time.

Who should we look to for advice in these days when the market is down? I think the answer is obvious.



"The person who never bothers to think about the economy blithely ignores the condition of the market, and invests on a regular schedule is better off than the person who studies and tries to time his investments, getting into stocks when he feels confident and out when he feels queasy." -- Peter Lynch, Beating the Street, p. 36

"If you can't convince yourself “When I'm down 25 percent, I'm a buyer” and banish forever the fatal thought “When I'm down 25 percent, I'm a seller,” then you'll never make a decent profit in stocks…." -- Peter Lynch, One Up on Wall Street, p. 246

"Losses of last October (1987) were only losses to people who took the losses. That wasn't the long term investor. It was the margin player … the options player and the portfolio manager whose computer signaled “sell” who took the losses. Like a cat who sees himself in a mirror, the sellers spooked themselves." -- Peter Lynch, One Up on Wall Street, p. 288

"I don't go into cash…. Going into cash would be getting out of the market. My idea is to stay in the market forever, and to rotate stocks depending on the fundamental situations. I think if you decide that a certain amount you've invested in the stock market will always be invested in the stock market you'll save yourself a lot of mistimed moves and general agony." -- Peter Lynch, One Up on Wall Street, p. 245

"I'm fully invested … I'm always fully invested. It's a great feeling to be caught with your pants up." -- Peter Lynch, One Up on Wall Street, p. 296

"A decline in stocks is not a surprising event, it's a recurring event – as normal as frigid air in Minnesota. If you live in a cold climate, you expect freezing temperatures, so when your outdoor thermometer drops below zero, you don't think of this as the beginning of the next Ice Age. You put on your parka, throw salt on the walk, and remind yourself that by summertime it will be warm outside.

"A successful stockpicker has the same relationship with a drop in the market as a Minnesotan has with freezing weather. You know it's coming, and you're ready to ride it out, and when your favorite stocks go down with the rest, you jump at the chance to buy more." -– Peter Lynch, Beating the Street, p. 46

"Bargains are the holy grail of the true stockpicker. The fact that 10-30 percent of our net worth is lost in a market sell-off is of little consequence. We see the latest correction not as a disaster but as an opportunity to acquire more shares at low prices. This is how great fortunes are made over time." -- Peter Lynch, Beating the Street, p. 115

"As so often happens in the stock market, several years worth of patience (can be) rewarded in one." -- Peter Lynch, Beating the Street, p. 270
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