Learn to Earn is book by Peter Lynch, one of the Best Fund Manager of all time. He has given a gift on knowledge of Investment in his book. Unlike The Intelligent Investor, this book for beginner in Stock market. Today I have completed it and find it quite good for someone to get basic clear.
Chapter one was on History of Capitalism and I didn’t find much interest while reading that. One can skip it if do not have interest on history
Second chapter the basic of investing was quite useful for readers. In this he explains very clearly how to invest in individual stocks and how to gather information about them. It details what a brokerage is, how it functions, why you may or may not want an expensive stockbroker, how to gather information about companies and decide whether to invest in them, what dividends are and how they work, and so on.
In one part Mr Lynch Mentioned:
“You many not triple your money in stock very often, but you only need few triple in life time to build up a sizeable fortune. Here’s the math: If you start with $10000 and manage to triple it five times, you’ve got $2.4million, and if it ten times you’ve got $590million and 13 times, you’re the richest person in America”
In next chapter Mr Lynch has given information of how company’s life cycle works. At each stage of the company’s life, the risks and rewards of investing were different – it was a growing stock, a steady stock, a value stock, and a growth stock again at various points along the way. Lynch does a great job of explaining this relationship of a company to its stock, making the connection very clear.
And in last chapter he mentioned very important point about investing. Success of companies depends lot on Leadership. And what does that mean to the investor, or the person learning about personal finance? A great leader means you’ll have a valuable stock – a bad leader means you’ll have an under performing stock. Lynch puts a lot of value in this, and he provides a lot of interesting examples and evidence for the argument.
For someone who doesn’t know ABC of Investment, this book is good guide to start. You can get this book from any library or you can buy it for your personal collection from here:
Click to get your copy: Learn to Earn by Peter Lynch
Be Smart. Invest Smartly