Quote of the Week - Peter Lynch
“There seems to be an unwritten rule on Wall Street. If you don't understand it, then put your life savings into it.” -Peter Lynch
By saying this, Peter Lynch was mocking many investors who tend to invest in assets that are filled with jargon and complexity. In investment, common advice is to invest in only that which one understands.
Yet, there are many stocks that investors would flock to simply because very few understood it and that, they associated with being high-tech and sophisticated.
Often, in some very hot stocks, this would lead to more and more investors piling their money into such a stock which would result in the stock climbing astronomically.
Unfortunately, for most of these investors, such stocks would reach a tipping point and crash when others least expect it.
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