Collection: Peter Lynch - #18 'There's a Company Behind Every Stock'


Video Link: https://youtu.be/dJ_6lB_cxQw


In this episode, Peter Lynch talks about the reason for stocks to go up and what does he meant there's a company behind every stock?


In this episode, you’ll learn:

  • There's a company behind every stock, what does it mean?

  • What are the main reason that make stocks to go up?

To check out all Collection: Peter Lynch <click here>

[Transcript]

(Source: https://www.c-span.org/video/?60722-1/us-economic-investments)

PETER LYNCH 00:00

It bothers me that people are very careful with their money.


The public, when they buy a refrigerator, they go to Consumer Reports. They buy a microwave oven, they do that. They ask people what’s the best radar range or what car to buy. They do research on apartments. When they go on a trip to Wyoming, they get a Mobil travel guide. When they go to Europe, they get the Michelin travel guide.


People hear a tip on a bus on some stock and they’ll put half their life savings in it before sunset, and they wonder why they lose money in the stock market. When they lose money, they blame it on the institutions and program trading. That is garbage. They didn’t do any research.


They bought a piece of junk, they didn’t look at the balance sheet, and that’s what you get for it. And that’s what we’re being driven to, and it’s self-fulfilling. The public does terrible investing, and they say they don’t have a chance. It’s because that’s the way they’re acting.


I’m trying to convince people there is a method. There are reasons for stocks to go up. Coca-Cola – this is very magic. It’s a very magic number, easy to remember.


Coca-Cola is earning 30 times per share what they did 32 years ago. The stock has gone up thirtyfold. Bethlehem Steel is earning less than they did 30 years ago. The stock is half its price of 30 years ago.


Stocks are not lottery tickets. There’s a company behind every stock. If a company does well, the stock does well. It’s not that complicated.

7 views0 comments
  • Facebook Social Icon
  • YouTube

Like & Follow YAPSS social media page to get notify on the latest update.

Disclaimers: YAPSS/YAPSS.com is not managed by a registered investment advisor or a broker/dealer. Information from YAPSS/YAPSS.com and any content posted by YAPSS/YAPSS.com is for entertainment & education purposes only and not a buy or sell of security recommendation. In no event shall YAPSS/YAPSS.com be liable to any damages arising out from the use of YAPSS/YAPSS.com content or material published or available on YAPSS/YAPSS.com. Lastly, YAPSS/YAPSS.com is in no way guaranteed for accuracy or completeness of published information and hence, please do your own due diligence.

©2020 by YAPSS. All Right Reserved.