Recently an old video of a legendary investor Peter Lynch has resurfaced on social media, providing timely information as global stock markets face strong volatility. In Thursday’s X post, Lynch’s message emphasized that stock market declines are not cause for panic but opportunities for informed investors, highlighting the inevitable market decline over time.

Lynch, who managed Fidelity’s Magellan Fund, argues that understanding market history is crucial before reacting to falling markets. He notes that in the past 93 years, markets have experienced roughly 50 declines of 10% or more, which translates into a correction roughly every two years.

Peter Lynch: “Markets go down, sometimes very down. If you’re not prepared for that, you shouldn’t own stocks.”

A timeless master class in handling market volatility. pic.twitter.com/1Se8nPCRqh

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Lynch emphasizes that market declines should be viewed as opportunities, not threats. “If you like a 14-year value and it goes to 6, that’s great,” he explains, suggesting that lower prices can provide better entry points for strong companies with strong fundamentals.

He notes that the move from 6 to 22 is “exceptional,” illustrating how long-term investors can benefit from buying quality companies at bargain prices during downturns. This perspective is especially relevant for those who are willing to accept market volatility.

Another key lesson from Lynch is the futility of market timing. He points out that predicting accidents consistently is nearly impossible, and those who claim to have done so probably made the same prediction several times before they were right.

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Instead of trying to guess the market, Lynch advises investors to focus on understanding the companies they own. Patience is just as important, as Walmart shows, where even late investors could have made significant returns.

Lynch’s message emphasizes that stock market declines are reminders of how markets work, not signs of panic. For investors who understand the business, stay patient and welcome volatility, downturns can be one of the most rewarding moments of their investment journey.