Investing is about doing your homework
April 12, 2020
“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.” – Peter Lynch.
Dubbed a legend in investing circles, Lynch is a man who knows how to make a smart investment. As head of Fidelity’s Magellan Fund, he grew the fund’s assets from $18 million to $14 billion, which is no small feat. The main driver behind his success is the idea that you should always invest in what you know and take the time to learn about what you don’t.
Investing in stocks, and investing, in general, requires due diligence, a plan, studying the fundamentals of stocks, not just buying shares or equities randomly hoping to make money with. This is not investing, but gambling.