A Wall Street legend explains why it ‘disturbs’ him when people tell him they ‘play the market’

“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.”

Source: Bloomberg

 Trader Georgi Bozhidarov

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