“Playing the markets” is a common idiom on Wall Street.
But Peter Lynch, a mutual fund legend, is no fan of the expression.
For 13 years, from 1977 to 1990, Peter Lynch headed the Magellan Fund of Fidelity, the Boston-based multinational financial services corporation. He retired in 1990 at the top of his game and is often considered one of the best stock pickers to ever run a mutual fund.
According to Investopedia, Lynch beat the S&P benchmark in 11 out of the 13 years during which he managed the Magellan Fund, “achieving an annual average return of 29%.
“Play is the wrong verb for the stock market, this is work,” he said.”It can be fun work.”
“You don’t get a tip on the bus and buy for $10,000 some stock,” he added.”You’ve got to do some research if you’re buying a stock whether you are an amateur or a professional.”
Lynch said this sort of “gambling” or “playing the markets” is widespread.
“You have to separate investing versus gambling,” he said. “And a lot of people are gambling and that doesn’t work.”
Trader Georgi Bozhidarov