[Investment Quote] "Never sell when the stock price is falling" ㅡ Day 30

This content is not investment advice for any specific asset or security, but aims to provide psychological tips for cultivating an unwavering investment mindset in highly volatile markets. Wishing you successful investing. [Editor’s note]

Do not sell when the stock price falls. Instead, understand the reason for the decline.

— Peter Lynch —

When prices fall, people instinctively feel the urge to sell before they fall further. But Lynch points out that a price decline itself should not be a reason to sell. The key is to understand the cause of the decline. If the company’s fundamentals are deteriorating, selling is correct; but if the decline is merely due to a general market downturn, it can be an opportunity to buy more. In the cryptocurrency space, when Bitcoin drops, altcoins often fall in tandem, which is often not an issue with the individual projects themselves.

Distinguish between price decline and value decline.

Peter Lynch (1944~) was the legendary fund manager who managed the Fidelity Magellan Fund from 1977 to 1990, achieving an astonishing average annual return of 29.2% over 13 years. He grew assets from $18 million to $14 billion. He popularized the concept of “tenbagger,” referring to investments that yield ten times the return, and is known for his philosophy of “invest in what you know.” He emphasizes a bottom-up research approach, discovering investment ideas from products and services encountered in daily life as consumers.