Lynch in this chapter talks about the distractions that are unavoidable for every amateur investor. I can undeniably say that these distractions are part of every investor’s endeavor. I have tried to put Lynch’s perspective in this short post. Lynch talks about the weekend worrying as every investor’s enemy. Let’s dive into understanding another one of his important principles.
You can’t see the future through a rear view mirror.
The key to making money in stocks is not to get scared out of them. There is a lot of good clean information out there which is of no use if there is no, willpower. The person who is not bothered by the current economic conditions and keeps investing on a regular basis with a proper schedule is better off than the person who studies the economy and tries to time the market.
Very often we see ourselves worrying about our investments on weekends. It is on our weekends that we find our head wrapped around some distressing news that we come across via TV or newspaper. News such as global warming, trade wars, budget deficit, inflation, and everyone’s favorite the money scams. This type of news provokes us to take impulsive decisions. A wise investor should ignore all this noise and keep investing with their strategy. If the story of your stock pick is intact and you concretely believe in the company and its products or services, then stand by it. In the longer-term, you will be benefitted.
A sucessfull investor does not let weekend worrying dictate his/her strategy.
Whenever you are confronted with doubts and despair about the current big picture, you need to concentrate on the EVEN BIGGER PICTURE!
The EVEN BIGGER PICTURE tells that the last 70 years provided stock owners great CAGR returns.
– Wise words by Peter in his book, Beating The Street.
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