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Peter Lynch: Bonds and stocks

“When you buy shares in a company, if it manages to produce profits, you are a partner in those profits. On the other hand, if you buy an IBM bond, after 20 years, the company will repay you the money and say ‘thank you very much.’ It will pay you the interest, but it will not be loyal to you, and you certainly will not enjoy the fruits of its success. That’s the big difference between bonds and stocks.” Peter Lynch

 

 

 

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