BSP projects 3.5%-4.3% inflation for December 2021

In a December 29, 2021 press release, the Bangko Sentral ng Pilipinas (BSP) projected December 2021 national headline inflation to settle within the 3.5% to 4.3% range on the strength of higher electricity rates and the uptick in food prices due to weather disturbances.

This comes as a slight reversal from the downtrend to 4.2% Philippine headline inflation reported the month prior in November 2021 as per the Philippine Statistics Authority (PSA).

The November 2021 slowdown was attributed to lower inflation rates reported in the indices for food and non-alcoholic beverages (down to 3.9% from 5.3% in October 2021) alcoholic beverages and tobacco (down to 7.5% from 9.8% in October 2021), and furnishing, household equipment, and routine maintenance of the house (down to 2.4% from 2.5% in October 2021). These were offset by higher inflation rates reported for housing, water, electricity, gas, and other fuels (up to 4.6% from just 4.4% in October 2021) and transport (up to 8.8% from just 7.1% in October 2021).

Nonetheless, the BSP’s projection remains under the average inflation rate from January to November 2021 of 4.5% and well under the high of 4.9% reported in August 2021.

7 Peter Lynch Quotes on Investing

During his thirteen-year stint as manager of the Fidelity Magellan Fund from 1977 to 1990, Peter Lynch managed to post 29.2% in average annual return, cleanly beating the S&P 500 stock market index by more than double over the same period. This phenomenal track record effectively cemented his position as one of history’s greatest investors.

Although also a proponent of value investing, Peter Lynch seemed more an advocate of straightforward fundamental analysis as a practice. He insisted on only investing in what you know which often meant performing the necessary legwork to research companies as thoroughly as possible.

More recently, Peter Lynch has commented on the “mistake” of passive investing, citing that he believes active investors have beat the market for years and would continue to do so.

In line with this, we have collected seven of our favorite Peter Lynch quotes on investing below.

“Stocks are not lottery tickets. There’s a company behind every stock. The company does well, the stock does well.”

Peter Lynch

Neat’s Notes: In the words of our lord and savior Lou Mannheim (Wall Street, 1987): “Stick to the fundamentals. That’s how IBM and Hilton were built. Good things sometimes take time.”

“If you spend fourteen minutes a year on economics, you’ve wasted twelve minutes.”

Peter Lynch

Neat’s Notes: Lynch makes reference to economics “in the broad scale” in which one attempts to discern uptrends or downtrends in whatever aspect of the economy. Lynch largely wanted to avoid “economic predictions”, preferring to stick to “economic facts” which meant actual numbers measuring things that have actually happened.

“If you can’t explain to a ten-year-old in two minutes or less why you own a stock, you shouldn’t own it.”

Peter Lynch

Neat’s Notes: In the words of whomever: “Keep it simple, stupid!”.

“You can take advantage of the volatility in the market if you understand what you own.”

Peter Lynch

Neat’s Notes: Lynch also pointed out that if a stock went down by a lot from when you bought it, you would be in a better place to know the best thing to do if you understood what you owned as opposed to, say, quickly selling out in a panic.

“You can’t get too attached to a stock. The stock does not know you own it.”

Peter Lynch

Neat’s Notes: Yes.

“Avoid long shots. I bought about thirty long shots in my life. I’ve never broken even on one.”

Peter Lynch

Neat’s Notes: We would also like to add that it is usually unwise to go headlong into something without conducting at least some sufficient amount of personal research.

“It’s always gonna be scary, there’s always gonna be something to worry about, and you just have to forget all about it. Cut it all out and own good companies and turnarounds. Study them and you’ll do well.”

Peter Lynch

Neat’s Notes: We think this quote best encapsulates Peter Lynch’s whole mindset with regards to investing. Simple and no nonsense. We also hope it can help guide you towards achieving 29.2% average annual returns over the next thirteen years.

Peter Lynch’s 1994 lecture on investing may also be of interest to those keen on getting more stock-picking tips from the man himself. We at Neat’s have watched it 3,906,483,290 times—still substantially less than the USD14.0 billion Lynch was managing at one point for the Fidelity Magellan Fund.