Another point you’ve made and this is I think particularly relevant ten years into a bull market is that I think you said more money has been lost anticipating a downturn than actually in the downturn. Can you explain?
PETER LYNCH 00:11
Well, obviously the markets gone up tenfold since I stopped working at Magellan. So, you make more money on the upside. The markets be a lot higher ten years from now, twenty years now, thirty years now. Trying to predict the market is really a waste.
I don’t know it’s gonna do. It can go down. When I ran Magellan 13 years declined 10% or more, nine times the market. I had a perfect record. I went down more than 10% every time. Whenever the market went down, I went down more. But over the long term the upside is more than the downside.
So, you are gonna say to yourself. Do I need the money in the next month, do I need the money in next year, do I have kids going to college, do I have a wedding coming up, then you’re a bad investor. If you keep putting money in, have 5, 10, 15, 20, 25 years you should do well.