Peter Lynch Quotes

Wide diversification is only required when investors do not understand what they are doing.

Both cheap value stocks and more glamorous growth stocks can work well in a portfolio - if done right.

The beauty of diversification is it's about as close as you can get to a free lunch in investing.

Having different types of stocks in your portfolio can enhance returns.

I think it is crucial to diversify one's portfolio.

Diversification is an established tenet of conservative investment.

Even with a margin of safety in the investor's favor, an individual security may work out badly. For the margin guarantees only that he has a better chance for profit than for loss - not that loss is impossible. But as the number of such commitments is increased the more certain does it become that the aggregate of the profits will exceed the aggregate of the losses.

In the long run, a portfolio of well chosen stocks and/or equity mutual funds will always outperform a portfolio of bonds or a money-market account. In the long run, a portfolio of poorly chosen stocks won't outperform the money left under the mattress.

Optimization tells us precisely how to diversify the portfolio, whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the industry groups but the stocks.

I don't think that a mutual fund that invests exclusively in biotech start-ups or invests exclusively in companies in Thailand offers any great safety or diversification.

There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.

What I'm trying to say is that for the average investor, what I would encourage them to do is to understand that there's inflation and growth. It can go higher and lower and to have four different portfolios essentially that make up your entire portfolio that gets you balanced.

Many follow a rule of thumb - no more than 5% in one stock. But that's not the entrepreneurial road to riches.

My view is that one should diversify broadly across different fund investments. However, it's tough for investors to try to pick the appropriate risk level that they should manage their funds at. Having a personal adviser would be helpful.

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

If the investor doesn't have enough time and skill to investigate individual stocks or enough money to diversify a portfolio, the right thing to do is to invest in exchange-traded funds that give you exposure to asset classes. It does make sense for the individual investor to think in terms of holding individual asset classes.

I'm going to retain a lot of Microsoft's stock.

Children should be taught in school that you should have all kinds of asset classes in your portfolio. They should be taught what those asset classes are, and their advantages and disadvantages.

You've always got to think about having some fixed income in your portfolio as well as equities.

Diversify, because that helps reduce risk. And you can diversify outside the United States. Some people would never invest in Europe - I think that's a mistake.

I haven't changed any of my investments since I've been in the Senate and haven't purchased any stocks since I've been in the Senate.

Well, there's always risk in long-term investment.

If Warren Buffett could change his mind about investing in airlines, Mohnish Pabrai could change his mind about investing in autos. Pabrai, who has modeled his investment career and fee structure after Buffett's original partnership, counts General Motors, Fiat Chrysler, and Ferrari in his highly concentrated portfolio.

I don't think you should put all your money in one place. It must be invested in different investments.

The difference between success and failure is not which stock you buy or which piece of real estate you buy, it's asset allocation.