A classic on stock investing written by legendary Wall Street investor Peter Lynch!

“Buying stocks in any company without studying them is like playing poker without looking at your cards.
There's a reason people make money in real estate and lose money in stocks.
“They spend months choosing a house, but they pick stocks in minutes.” Peter Lynch says that stock investing is not a gamble that wins by luck, but rather a process of endless research and analysis to find stocks that will grow.


Is there a way to find and invest in growth stocks and achieve returns hundreds of times greater? This book is the latest revised edition of "Heroes of Wall Street," a book by Wall Street legend Peter Lynch published in 1989 for individual investors.
This is the first book he wrote after retiring from Wall Street. It is an investment guide that humorously describes the author's philosophy on stock investment while being written in the form of an autobiography.
It contains the secrets of acquiring the Magellan Fund with only $20 million and growing it into a $14 billion mutual fund, a 660-fold increase over 13 years of operation.


Peter Lynch adopted value investing, focusing on growth stocks, as his investment principle.
Rather than focusing on market trends, he focused on the value of individual companies and sought out new investment targets directly from his daily life.
His wife's shopping list and resorts he found on vacation also became his investment targets.
With these principles, he proves that individual investors have a greater advantage than professional investors.


Peter Lynch reveals in detail the stocks that have made profits dozens of times over the years, as well as those that have suffered losses, and discusses the mindset and attitude one should have when investing.
He introduces six types of stocks—low-growth stocks, large-cap blue chips, cyclical stocks, high-growth stocks, turnaround stocks, and asset stocks—and their characteristics, optimal trading times, and a final checklist, revealing his own investment know-how.
It encourages individual investors to break free from stereotypes about stock investment by emphasizing that they have better investment conditions and can generate higher returns than professional investors.

Since I didn't want my mother-in-law, Charles Hope, to invest in risky stocks, I advised him to buy Houston Industries, a very "safe" company.
This stock has been holding steady for over a decade, so it's definitely safe.
I thought it would be better to invest my mother's money in something more 'gambling', so I bought her a more 'risky' stock called Consolidated Edison.
This stock has risen sixfold.
This stock was not very risky for those who kept an eye on the company's basic operations.
While jackpot stocks come from so-called high-risk sectors, the risk depends more on the type of investor than the sector the company belongs to.
The biggest advantage for those who embrace uncertainty and invest in stocks is that they are exceptionally rewarded for making the right choices.

---From Chapter 3, “Investment or Gambling?”

If you can't stand it and buy a stock at $50, buy more at $60 ("See, it's going up just like I expected"), and then get desperate and sell it all at $40 ("I guess not.
If you are the type of investor who says, “The damn thing is going down.”, then reading investment books will not help you.


When someone predicts the market, we should snore instead of listening.
The secret is not to trust your gut instinct, but rather to exercise self-control and ignore it.
As long as the company's fundamentals don't change, keep holding the stock.
Otherwise, the only way you can increase your wealth is to buy J.
There is no other surefire formula for success than the one presented by Paul Getty.
“Get up early, work hard, and catch a windfall.”
---From Chapter 4, Self-Diagnosis

If you choose the right stocks, the market will take care of itself.
If you can't find a single company that's reasonably priced or meets your investment criteria, the market is considered overvalued.
Buffett said he returned the money to his partner because he couldn't find any stocks worth holding.
He looked at hundreds of companies, but couldn't find a single one that was worth buying based on its fundamental merits.
The only buy signal I need is to find a company I like.
When you find a company like this, there's no need to worry about whether it's too early or too late to buy.
---From Chapter 5, “Don’t Ask If the Market is Good Now”

There has been a long-running dispute between the two factions of investment advisors.
The Gerald Loeb school argued, “You should put all your eggs in one basket,” while the Andrew Tobias school said, “Don’t put all your eggs in one basket.
“There might be a hole in the basket,” he replied.
If my one basket was Walmart stock, I would have put all my eggs in it.
On the other hand, if you had put all your eggs in a basket called Continental Illinois, you would have been in for trouble.
If I had been given five baskets—Shawn's, Limited, Pep Boys, Taco Bell, and Service Corporation International—I bet I would have divided my eggs evenly among them.
But if this diversification had included Avon Products or Johns Manville (which went bankrupt because of the asbestos lawsuit), I would have been more inclined to have a solid basket of Dunkin' Donuts.
The point is, don't get hung up on the number of items, but examine the content of each item on a case-by-case basis.

---From Chapter 16, Portfolio Design