‘Couldn’t pronounce Nvidia’ until 8 months ago
Legendary investor Peter Lynch In the 1980s, while controlling the Fidelity Magellan Fund, it became famous to routine the market routinely. Nezly years later, they have some advice for new generation investors.
The explosion of artificial intelligence has been dominated by the market for the last three years, but until 1990, Magellan’s rudder, which provides an average return of 29.2% in 13 years, was happy to watch among them.
“I have zero AI stocks,” Lynch said “Compounds and friends” Podcast with investor Josh Brown. “I could not fully pronounce the word Nvidia Until about eight months ago. “
Lynch, who claims this famous at a time 1 out of every 100 Americans had a share in Fidelity MagellanHe addressed his Podcast career, the lessons he learned along the way, and yes, he appealed for everything that depends on today’s artificial intelligence. Here are five of the biggest packages:
Sit out
Megacap technology stocks, Chatgpt In the late 2022, he questioned that many of the Wall Street reminded of the AI trade in the late 1990s. When asked if investors chased AI too much, Lynch said “he had no idea”.
Lynch said he didn’t understand the technology enough to have a conscious view of the market’s optimism against artificial intelligence.
“I am the lowest technology man so far,” he said. “I can’t do anything with computers. I only have yellow pads.”
Lynch refused to discuss his current portfolio or his currently loved stocks and referred to the rules of loyalty.
Why ‘you don’t play the market’
Lynch has long argued that investors have been investing in depth. This is a basic principle of his book “One in Wall Street. “
“I have this statement: ‘Know what you have,’ ‘Lynch said.” If you don’t understand what you have, toast. “
Lynch said it would spend hours to investigate flights to make people get the best price. However, when it comes to investment, “they will put $ 10,000 in their crazy stocks on the bus.” He said.
He described the phrase “play the market” as “terrible” and “dangerous”. Instead, Lynch said that people should buy good companies and have awareness about what they do.
Lynch said that the average variation in the security of a typical New York Stock Exchange in any year is 100%, so investors should know what to do when big moves took place.
Entering after the first shot
Although traditional wisdom is to buy a stock before it began, Lynch warned all investment ideas against cleaning up because of the fact that only one security is already collected.
“Sometimes you don’t have to be in the first shot, L Lynch said.
Lynch as an example, McDonald’sI was said to have been said a long time ago, he had already seen a quick home growth. The hamburger chain continued to see a strong growth when it expanded internationally.
Lynch said, “People said,” McDonald is over. “They just didn’t think.”
Investment Advantages Today
Today’s investors have “pillows” that did not exist before Great depression And New agreementAccording to Lynch.
Lynch has chosen to create the creation of the Employment Insurance, Social Security Assistance and the Stock Exchange Commission, which helps daily people over time. He has also emphasized the active role of Federal Reserve in recent years.
Bugün Today, investors take advantage of “many better things”, Lynch notes more market and economic “buffer” than in the past.
Lynch said that investors were frequently prepared for an economic collapse at the 1930s. But since then, none of the market tests, even Global financial crisis In 2008-2009, he had the same downward density.
“We had many opportunities to have the ‘big one’.” He said. “We probably had bad presidents, some bad congresses, we had bad economists, and we succeeded.”
The future of the work
Lynch assured the workers who wondered if they would lose their jobs to AI.
In the early 1980s One million people work for AT & T Only at a time when the entire labor force is It stopped at about 100 million. Even if the telecom sector grows, Lynch said today that leading companies employ approximately 400,000 workers.
Today the US labor itself is swollen Last 160 million jobs. Americans probably rely on expansion in some sectors.
Lynch’s comments, Walmart with Emphasis He warned that artificial intelligence will greatly reshape labor force.
“Great country. We’re Creator, Ly Lynch said. “America creates, China is multiplying, and Europe is making laws.”
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