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are you finding it hard to preserve your portfolio during a market crash or are you looking for ways to invest during fluctuations in the market it cannot get bigger than peter lynch's advice on how to invest during a market crash can it by analyzing and applying the investment methodology of peter lynch you'll not only be learning how to invest during crash but you'll also learn how to preserve your portfolio and make millions of dollars before we dive into the video anything related to value investing about financial freedom being the vice chairman of the fidelity investments peter lynch is one of the most successful and well-known investors of all time according to lynch it is not the bad news that matters but how we react when we hear that news that makes a big difference but before jumping onto lynch's wisdom we need to understand why and how a market crash takes place what is a market crash to begin with a market crash takes place when the gains made by an investor start to erode due to a sudden drop in the market that also means that billions of capital can turn into ashes in weeks days or sometimes in a matter of hours share prices of different companies and businesses can drop to a very low value causing a loss of billions of dollars market crashes are not new as they take place quite often some of the most popular market crashes are the wall street crash of 1929 the black monday in 1987 the stock market crash of 2008 and most recently occurring covert accelerated crash in the stock market so what can we do when these crashes take place are these crashes inevitable and what's the point of jumping into investing our money if we're going to lose all of it anyway all these questions are normal to arise in the minds of value investors rule one focus on company fundamentals and not on macroeconomic developments so how do we address the problems at hand how do we preserve our portfolio let's take a look at what peter lynch has to say about this let us just say that you buy a company these are not lottery tickets you are owning a small part of that business if the company does well then over time the stocks will also do good and vice versa the stock market can be thought of as a wild beast and not everyone is under the control of the investor numerous variables can knock you out like a boxer's left hook according to peter lynch the major mistake these value investors make is that they focus too much on these global macroeconomic developments focusing too much on these developments can lead to adverse effects in the long run they become their main focus and that is when most investors start losing their ground and just because the information is easily accessible today people can get themselves preoccupied they get so much information regarding these macroeconomic developments that it leads to information crippling and this is what can create havoc for them as they lose their ability of good decision making this is what can destroy your portfolio lynch argues that the real focus of an investor should be up picking the winning companies company fundamentals should rule over any other external factors in determining the value of equity security in the bigger picture understanding this important relationship could help generate half of the returns macroeconomic developments are temporary and inconsistent variables that come up and they should not be worth the attention of a value investor instead of trying to play with multiple companies at the same time just try to buy companies that are solid in whatever the standard of interest you have this is what makes analyzing companies and picking them up at the right time the most important factor according to peter lynch so when you fill your portfolio with great and solid companies even when the market crashes the market has solid foundational fundamentals this is what provides these companies with the requisite boost to charter their course towards the top again so to summarize all of this according to peter lynch's rule number one you need to ignore all the ups and downs of the market and focus on which company you should pick for long-term benefits a simple example of the above stated rule is apple which has tripled its value since its record low during the pandemic that tells us that everything revolves around your ability to ignore all those global shifts and focus on business fundamentals rule 2 winning is almost certain in the long term when the strategy is correct when you're stepping into the stock market you need to be long-term oriented because you cannot survive with anything other than this mindset paying too much attention to short-term market fluctuations can be devastating for your portfolio when asked about the correct way to approach a market in the past lynch responded by saying that if you need money within 12 months for the down payment of a house the stock market is not the ideal place to be you can flip a coin over to decide about whether the stock market is headed over the next year for example we have no idea where the stock value for 3m or nasdaq will be headed for the next year the stock market is not the game you should play to earn some quick money in the short term but if you're in the market to stay and you're planning to play it long then time will be on your side and you should stick to your long-term investment plan to put it all simply the bottom line is that you should know that you're owning it and why you're owning it peter lynch has always been adamant that the stock market will only go up in the long term now it should be understood that this is not true for every individual stock but for the general market it is so that brings us to our success formula a healthy pick of stocks plus the long-term orientation is equal to big gains so if you're in a market crash don't panic and sell out all of your stocks out of fear because the market has only one place to head in the long run and that is up that's something worth remembering rule 3 stop worrying about a market crash and its longevity the main thing that peter lynch is always focused on is to not worry too much about a market crash now this one is surely hard to swallow for all the value investors but the maestro has spoken lynch stresses that worrying about market corrections and market crashes and adapting your portfolio to that is the silliest thing to do in the world the fact he wants us to understand is that the market crashes are part of the investing and they will keep on occurring to varying degrees the process goes on the market growing correcting and then growing even more is part of the process it completely depends on the value investors and how they choose to approach the problem the market crashing and then growing up even more is part of the process of growth and this cycle is called the business cycle effect when lynch was asked whether america was headed towards recession in 1988 he responded by saying that sure but why should we worry about it this was the worst recession since the depression in 1982 it came with 14 unemployment and 15 inflation but it resulted in growth some years ago trying to adjust or adapt your portfolio with all sorts of dangers in your mind will lead you to a blind end it will never yield positive results for you and that is why peter lynch wants you to plan for the long term without any fear of a market crash but if you're looking to start your investing journey you should begin by referring to the free ebook in the comment section below it contains six different stock categories and each one of them is analyzed differently this can go a long way in helping you achieve your financial freedom through investing so what do you think about today's video which one of these rules do you think can help you the most during a market crash are you afraid of the market recession if not what is your long-term goal what stocks are you planning to target the 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