A price drop in a good stock is only a tragedy if you sell at that price and never buy more. To me, a price drop is an opportunity to load up on bargains from among your worst performers and your laggards that show promise. If you can't convince yourself "When I'm down 25 percent, I'm a buyer" and banish forever the fatal thought "When I'm down 25 percent, I'm a seller," then you'll never make a decent profit in stocks.
Peter LynchNever invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets.
Peter LynchEveryone has the brainpower to make money in stocks. Not everyone has the stomach. If you are susceptible to selling everything in a panic, you ought to avoid stocks and mutual funds altogether.
Peter LynchThe biggest winners are surprises to me, and takeovers are even more surprising. It takes years, not months, to produce big results.
Peter Lynch