Nov. 14 at 3:15 PM
$PROP Peter Lynch heavily prioritized hands-on, personal research and common sense over relying on the often-flawed predictions of analysts and economists. He emphasized ignoring the noise of short-term price fluctuations to focus on a company's long-term fundamentals and growth potential. He also believed investors should not panic sell on dips or sell winners too early, and that a stock's price going down is not a good enough reason to sell a fundamentally sound company.
True value investing requires a focus on the company's business and its potential for change, rather than just its current "cheapness".
Analyst ratings have limited accuracy and should be used as one piece of information in a broader research process. While analysts provide expert opinions based on in-depth research, their predictions are not guaranteed due to market unpredictability, unforeseen events, and potential biases. Studies show that the overall accuracy of analysts are inconsistent.
