The typical big winner in the Lynch portfolio generally takes three to ten years to play out.

The stock market really isn't a gamble, as long as you pick good companies that you think will do well, and not just because of the stock price.

The biggest winners are surprises to me, and takeovers are even more surprising. It takes years, not months, to produce big results.

What makes stocks valuable in the long run isn't the market. It's the profitability of the shares in the companies you own. As corporate profits increase, corporations become more valuable and sooner or later, their shares will sell for a higher price.

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.

If you can't find any companies that you think are attractive, put your money in the bank until you discover some.

Everyone 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.