Buy Low, Feel High

“We see the latest correction not as disaster but as an opportunity to acquire more shares at low prices. This is how great fortunes are made over time.” – Peter Lynch

Buying a stock during a down period doesn’t feel so hot – until the price is happily ahead months later. In the case of personal down periods, I find the return to be within a matter of hours… as long as I seize the opportunity to exercise those mental muscles to cruise through it.

Bumpy Ground

“How frequently today’s mountains turn out to be tomorrow’s molehills, and vice versa.” – Peter Lynch

Having a pimple used to be a mountain. Making an honest mistake at work used to be a mountain. Disagreement with my opinion used to be a mountain. My making a disparaging remark used to be a molehill. My viewing most events as being within my control, or within another person’s control, used to be a molehill. These all will keep coming, but hopefully recognition is half of the solution to the problem. The molehills can be ignored, and true mountains conquered.

Are You Simpler Than A Fifth Grader?

“If you’re prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough to the fifth grader won’t get bored.” – Peter Lynch

That wisdom goes beyond investing. At some point, if it takes too long to explain yourself, then you may just be fooling yourself.

Someone recently asked me if I’d gone agnostic (“there is no God”) since I stopped going to church. Answer: Nope. I thank God regularly for such a great life. More than I did when I went to church. What fits some doesn’t fit all.

Live And Help Live

“[T]he best way to get the most out of a staff is to give people full responsibility. Usually, they will live up to it.” – Peter Lynch

I saw a presentation today suggesting that there can be more to it. The learning curve of an employee traces four stages using their model. The “enthusiastic beginner” is ready to take on the world. Often, he doesn’t know what he doesn’t know, and soon reaches one limit after another until his resources (most significantly, his own knowledge) runs out. At this “disillusioned learner” stage support and direction are what keep him from getting overwhelmed and quitting. In time, he becomes a “capable, cautious learner” who still appreciates encouragement, feeling a mix of capability and doubt. At last, he graduates into a “self-reliant achiever” whose productivity spikes.

The principle behind Lynch’s comment has been championed here before. Micromanagers are heels. Thing is, most managers agree. So they languish in the opposite extreme of excessive distance and insufficient support.

Giving full responsibility is half the equation. The other half is giving full support.