Just Read – Learn to Earn (Peter Lynch)
Am on a reading spree these days. Actually started reading this book almost a month ago. Considering the speed at which i read, its a miracle that i managed to wrap it up around 30-40 days.
The book is by legendary investor, Peter Lynch. Its actually a book for beginners to investing. Peter writes about the importance of investing early in life, and he puts forth his case of why equities are the place to invest in. He is more bullish on investing in Equities than Gold, Real Estate, Bonds, Mutual Funds and other investments.
According to Wikipedia, Peter Lynch is currently a research consultant at Fidelity Investments and has a net worth of US$ 352 million. His other two books, One up on Wall Street and Beating the street are considered must reads for anyone interested in investing.
The book is all about basics of investments and business. And if you are interested in reading about the origin of business in the US, the reason for America to go the capitalist way, the earliest billionaires in the country…it makes for a fascinating reading.
Though the book is completely based on the American business and economy, the book does give you a lot of much needed information of how to go about investing, how to read the balance sheet, the basis of investments etc in a very easy to read manner.
If you want to inculcate the habit of investments and savings in your kids life while they are young, this should be one of the earliest books for them to be introduced to. Its a good book for grown ups too who want to enter into the world of savings and investing.
One of the best managers in the history of mutual funds, Lynch is certainly the person to help people choose the right stocks and understand the market. More so than One Up on Wall Street or Beating the Street, this Lynch book is for beginning investors of all ages. Lynch and coauthor John Rothchild are family men who are worried that teenagers aren’t learning enough about the importance of American companies in improving lives and creating wealth. Lynch questions why students are taught that Hamlet was a tragic hero and Napoleon was a great general, but they don’t know that Sam Walton founded Wal-Mart. In fact, Lynch’s grasp of the past is one of the strengths of the book. One of the best chapters is “A Short History of Capitalism,” a witty and homespun look at characters like Karl Marx, the Communist who believed capitalism was doomed, and the robber barons, the shrewd railroad magnates of the late 19th century who amassed huge fortunes by manipulating the markets.
Unlike the robber barons, beginning investors, Lynch says, should stick to the basics: get in the habit of saving and investing and putting aside a certain amount every month; develop a strong stomach because the stock market is going to fall and there’s no way to anticipate it; do a little homework so you can understand the reasons to own a particular stock; and buy shares in solid companies and don’t let go of them without a good reason.
Peter Lynch – Learn to Earn: A beginner’s guide to the basics of investing and business.
Authors – Peter Lynch & John Rothchild
Pages – 270
Publisher – Simon & Schuster