Peter Lynch's quote

 

This quote is written in the book One up on Wall Street.

This quote means that industry where there is lower growth, entire of new firms is rare because it is very to compete with existing firms and many other reasons like that.

In this book he have given example of company name Philip Morris Ltd. Who is in the business of selling cigarettes. Cigarette industry have being declining in terms of volumes for many decades still they have manage to earn higher profits by increasing prices .Also the industry do not attract competition because of government policies and the reputation of the existing companies.

The above example also stands true in case of ITC Ltd.

Opposite to example is the credit/loan industry and retailing which over the year's have attracted massive competition.

This quote from Peter Lynch is the most basic concept. But people usually forget it and fall prey to the stock news, stock tips, stock advice, etc. 

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Stock are piece or part ownership in a business. When the revenue and profit grows the share price will ultimately grow .

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For example : If the profits of the company grows at 15% then share price over a period of time will also grow at a similar rate.

Warren Buffett's quote.

 

The above Buffett quote is based on the market cycle and debt. It means that when the market is at the full wing at the top and people are happy they leverage there position ; which can be hazardous for one's financial health.

For eg: Warren Buffett and Charlie Munger had a partner who leveraged his position and the when the tide turned he had to sell his share to Warren Buffett just because he had was leveraged.

Charlie Munger's investing quote.

The  most important thing to understand while investing in stock markets is, holding for long term always works. 

Also when you buy and sell stock frequently your broker makes money that's why don't get influenced by stock tips.

In real estate people don't flip , then why they think they can money by flipping stocks.

Golden words from the right hand man of Warren Buffet. 

Learning new skills or subjects is the most fascinating thing for me. And the compounding effect also kicks in over a period of time with it. 

This quote is my favorite .

It just means that one should try to invert the problem in order to solve it. Inversion may not solve the problem but can make it easy to solve it.

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For example : If one want to take brilliant decisions in life, he should first stop taking stupid decisions.