3min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

TIP536: Buffett and Munger’s Principles and Mental Models

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

Changing Your Mind on an Investment

Peter Lynch has said that, the stocks that have been the most rewarding to him have made their greatest gains in their third or fourth year. Investors tend to become complacent and stop questioning their existing holdings when their stock prices are going up. Just because the stock price of an existing holding is going up doesn't necessarily mean that nothing negative is happening in its business. Don't analyze your holdings only when they fall.

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