"The key to making money in stocks is not to get scared out of them. This point
cannot be overemphasized. Every year finds a spate of books on how to pick
stocks or find the winning mutual fund. But all this good information is useless
without the willpower. In dieting and in stocks, it is the gut and not the head
that determines the results." -- Peter Lynch, Beating the Street
I shared the quote with Tim during our Sunday afternoon walk. He and six friends
bought and sold stocks in a simulator. So far, most were in the red and some got
burned badly and vowed never to touch stocks again. Tim was still in and seemed
interested in the idea of a dividend income stream. It was good that he was paying
attention.
Lynch's idea should not be interpreted as encouraging investing on "gut feelings."
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