At the time when all the screens are turning red and people are rushing to sell to "protect capital", this man (Peter Lynch) is coming out to say words that are worth gold.
This video is not just advice; it is a "constitution" for anyone who wants to build wealth in the stock market and does not want to die of a heart attack.
This scene is what we call in adult language "Mastering the Crash".
Let’s decode the "glasses" through which Lynch sees the market, and why he loves it when stocks fall. 👇🧠
Optical illusion: "The fall is the norm" 🎢🛑
Lynch calculated it on paper: In 93 years, the market fell 50 times (by 10% or more).
The secret? In accounting language, it means every two years you have to take a "hot slap" (Correction).
The word Correction is just "a pet name" we call the quick loss, but the truth is: the market needs to breathe.
If you are not psychologically prepared for your portfolio to bleed every two years, then "the stock market is not for you" and find another job.
The shocking numbers: "The drop = Discount" 🏷️📉
The sentence that summarizes everything: "When the stock drops from $14 to $6.. this is not a disaster, this is a gift!".
The scenario: If you’ve studied the company and know its balance sheet is strong, this drop is an opportunity to buy the same item but at a 50% discount or more.
The meaning: The crash is the only time a smart investor knows to buy excellent companies at "rock bottom" prices.
Walmart's secret: "You don’t have to rush" 🐢🚀
The example he mentioned is a lesson for generations:
The company "Walmart" went public in 1970.
Everyone rushes to buy in the IPO and is afraid the opportunity will pass.
Lynch tells you: If you had "invested" and bought the stock 10 full years after the offering (to ensure the company is successful and not just a bubble).. you would still make 35 times your money!
Imagine? Wait for 10 years, and earn 3500%.
📌 The olive:
Opportunity doesn’t fly away, and fortune loves "patience" not "speed".
The market will fall, and that is a certainty like "death and taxes".
This chart says: If you understand what you are buying, the drop won’t scare you; on the contrary, you’ll wait for it to fill your portfolio.
Question for the followers:
Honestly.. when you see your stock drop 20%, do you act like Lynch and buy again (Average Down) or does fear make you sell at a loss and run?
Share your mental state during the crash.. 👇🤔
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