Peter Lynch talks about how to invest in the stock market when stock prices are at all time highs. Lynch managed the legendary Fidelity Magellan Fund where he achieved annualized returns of nearly 30%. He is the author of several best selling investing books including One Up On Wall Street. This interview took place in 1997.
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▪️Howard Marks on Investing in a Low Interest Rate Environment: https://www.youtube.com/watch?v=MRpgOfSL4TU
▪️Charlie Munger: 100 Years of Wisdom Summed Up in 20 Minutes: https://www.youtube.com/watch?v=S15XpqbUFFA&list=UU2cL3pI1H3tiozKif6A8fmA&index=19
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31 Comments
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Just crossed 200k, it's almost 6x growth from my starting point of 36k at the beginning of the year. My long-term goals are lining up nicely
As someone with 600k in nvda , it’s pe is 50x
wow Charlie Rose sure is a likeable guy (smh)
I’ve tried everything, and this market keeps crushing me. 😩 It’s like I take two steps forward and five back. I’ve blown through strategies, watched hours of YouTube, paid for 3 courses… still can’t stay consistent. If anyone’s worked with a mentor who actually helps you trade while you’re learning, I’m listening. I’m done with theory I need results.
Man just to be in the same room and see him work crap I'm thinking im never going to learn anything other than degenerate risk taking
Interviewer needs to learn to stfu
Charlie Rose never shut up and let his guests speak.
S&P P/E is over 20 now in 2025. Buckle up people.
Wow listened to this now, and having a very profitable year in the market. We are cooked economy wise
Man this host guy is so frustrating, shut the fuck up and let Peter speak.
This interviewer is so obnoxious. Every time Lynch starts to explain his perspective or make a point, he gets cut off by some dumb joke or pointless tangent.
This has to be one of the worst interviews ever. Peter was interrupted so many times, I couldn't follow what he was trying to say.
Charlie makes this impossible
The interviewer wouldn't shut up. Hard to follow.
This thing, called "Cisco"…
6.95$ was a nice price
winter is coming 🤣
This video is a lot more understandable at 75% speed. They're both very fast talkers.
“ why is Amazon paying me $63,858.38 per month “ I hate that troll ad before watching my YouTube videos!
This is Gold!
Bitcoin was not there before, people didn't have online trading access before
I think we can move the 20 P/E ratio indicator up a bit since this interview. The new number is really 25-30.
Total beginner here. I've got $25k to invest in stocks and bonds, and I want to grow it effectively while managing risk. What's the best way to allocate my assets and choose the right stocks for long-term growth? Any tips for someone just starting out?
Peter Lynch shares timeless advice on investing amid market highs, emphasizing that all-time highs are normal in growing economies. Drawing from his Fidelity success, he advocates focusing on fundamentals over timing.
Strategy Highlights:
– Invest in familiar, strong companies with earnings growth.
– Use PEG ratio to find value.
– Ignore short-term volatility; hold long-term.
– Diversify and research thoroughly.
– Historical data shows highs often precede gains.
Markets at all time high or not, I'm taking safety steps by diversifying. I put 100% of my 401k in VOO, 80% of my Roth ira VOO, the rest Brk.b and taxable accounts. Total of $750k at 41 years old. I know I could be doing better.
Damn. Let him talk
1:56 is his hair real? Andy Warhol hair?
With the market at all-time highs, where are people finding value? Are they still buying or mostly holding? I’ve got $100K ready, should I deploy now or wait for a better entry?
Key Takeaways:
Market Pullbacks Are Healthy:
Lynch believes that a market decline after a large rally is healthy. A rising market that gets too far ahead of earnings can create long-term problems (as it did in Japan).
When markets become overpriced (above a P/E of 20), you're essentially "discounting earnings 7-10 years out," which is dangerous.
Focus on Fundamentals, Not Panic:
A market drop doesn’t mean the fundamentals of good companies have changed.
If a company’s story and earnings remain strong, a price drop can represent a buying opportunity.
Best Way to Buy When Market Is Overpriced:
Lynch’s strategy is to buy great companies you already like, but only after they’ve had a price “haircut.”
He says look for companies that were already fairly priced, and now have dropped further — essentially a “5-for-4 sale.”
Don't chase stocks that are still overvalued or already "priced for perfection."
Buy What You Know:
Only invest in industries or companies you understand deeply. He emphasizes individual knowledge — like recognizing fast-growing restaurant chains, hotels, or retailers you've experienced yourself.
Small investors should be able to confidently follow and explain 4–5 companies.
Avoid Speculation and Derivatives:
Lynch avoids complex instruments like options and derivatives.
He believes time and fundamentals are on your side — not financial engineering.
Do the Research:
People do more research buying a toaster than a stock. Lynch urges doing due diligence: understand cash flow, debt levels, competition, and company outlook.
Stay Long-Term Focused:
You can’t predict short-term moves, but in the long run, corporate earnings will rise and stocks will go up.
Be prepared for recessions — they are inevitable — but don’t panic.
Peter Lynch’s Advice for Buying Stocks in an Overpriced Market:
“Find fundamentally strong companies you already liked and wait for them to drop from fairly priced to undervalued — then buy. Don’t chase what’s overpriced or already priced for perfection.”
He calls this “doing your research during a sale.” His approach is not market timing — it’s value hunting during temporary fear or market overreaction.
People always interrupt the nerds before they get their thoughts out