Peter Lynch: How To Invest With Stocks At High Prices

In this video Peter Lynch discusses how to invest when stock prices are at all-time highs. He gives practical pieces of advice that we can all apply to the stocks that we buy. Enjoy!

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Peter Lynch was one of the smartest investors that the world has ever seen. He got a return of 29.2% while been an investment manager of the Magellan Fund making it the best-performing mutual fund in the world. In this video I’m going to show you a clip of Peter Lynch talking about high stock market prices and what to do…

(Insert video)

One of the first things that you’ll notice in the interview is they talked about market P/E ratio’s. Whenever the market gets to a p/e ratio above 20, you need to be on your toes. Now that’s exactly the market we’re in currently. The S & P 500 is well above that 20 mark.

That means prices are high there’s no doubt about it. So the question is how do we invest?

As Lynch talked about in the interview, buy good quality businesses that are outperforming the competition. These are the ones that are going to survive a potential crash.
Secondly, check that their balance sheets are stable and preferably have a little bit of cash on them for tough times.
3rd, you’ve got to understand the company that you own. You wouldn’t buy a local business in your town if you didn’t understand it, and it should be the same with a publicly traded company.
And lastly remember that good times only last so long. Make sure that you are prepared financially and emotionally for if a crash happens. Because if you are you can do one of the most important things when it comes to investing, and that’s buying stocks cheaply…

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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.

[tahirisaid]

My outlook on money changed when I realized someone making $300, 000 can retire broke & someone making $80, 000 can retire a multi-millionaire. Living within your means and living a frugal lifestyle is the first step to financial independence. I just hit the one million mark last year, cheers to everyone striving to get there someday.

[Susanhartman.]

My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless.

[alexsteven.m]

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[JenniferDavis]

Buying a stock may appear simple, but selecting the appropriate stock without a proven strategy can be tough. I've been trying to expand my $210K portfolio for a while, but the biggest hurdle is a lack of defined entry and exit strategies. Any advice in this area would be greatly appreciated.

[SylviaJoe]

The fin-Market;s have underper formed the U.S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfolio of $750k is down to $592k any recommendation;s to scale up my return;s during this crash will be highly appreciated.

[ThomasWilliam-swms]

Smaller, speculative stocks have endured a historically weak stretch. Investors are betting that a turnaround is finally in the works. I’ve lost about $320k within a few months, how do i take advantage of the market turnaround?

[universalhologram]

The host never let him talk! He was giving some good points about "Finding only a few good companies a decade". I just wish he was able to finish that thought, before the annoying interviewer barged in, ugh.

[vegeta]

Man if I was interviewing Peter Lynch I would not interrupt and take notes. He’s literally top 3 of all time investors

[pagelivingbeautifully]

Lynch is brilliant! Just wish the interviewer hadn’t interrupted him throughout the interview.

[w_ww]

no one should EVER interrupt Lynch, just ask good questions, then shut up and listen!! Also, I'm happy to hear Lynch say that he didn't care for options etc. Wise man.

[KRISIS]

When CD roms came in a huge ass box. Ahh those were the times...

[exclusivegofret]

Thanks to Peter Lynch having invited the other guy for the interview. One day I like to listen Peter Lynch, might be interesting as well.

[ktube]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement of about $750k. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?

[davidparker]

We would have learned a lot more had there been fewer interruptions!

[stevend.bennett]

You’re interviewing a man with knowledge and experience and don’t let him speak. Typical lousy interviewer.

[kalied]

This is a gold mine. I can listen to Peter Lynch all day

[evertmaree]

Is it possibsle to interrupt lynch more?

[ryanrosser]

Peter Lynch is brilliant! Like the saying goes "If you can't explain something well enough for everyone to understand you don't understand it well enough yourself." This guy just gives solid simple advice. I wish more people followed him and stopped playing last man standing.

[kungfusing]

This interviewer would do well as a podcaster. He has the ability to cut his guest off just before they are about to make their point every time.

[rufusphilip]

Lol back when P/E ratio over 20 was concerning, ✨simpler times✨