PostHeaderIcon Learn To Earn – A Book review (Highly recommended for newbie investors)

A lot of people oftentimes would ask me this question – How should I start investing ? I would often tell them that learning to invest takes time and that an investing rule of the thumb is never invest in what you don’t know know or understand. This could be well said about investing itself. Never start investing if you don’t understand what it is all about.

Investing therefore requires study and reading several materials both online and offline. People need somebody to guide them so that they do not have to commit costly mistakes.

One of the first books I always recommend for beginner’s in investing is the book “Learn to Earn” by Peter Lynch and John Rothchild.

Why “Learn to Earn” ? Well this isn’t the first book on investing that I have read, but the answer is really simple. The title is a dead give away. You want to learn to earn ? Then read how to learn to earn. Isn’t that simple enough ? LOL

Seriously, I highly recommend this book as the first book to read on investing because of they way it is written. Most would be investors do not have a grasp about the basics of investing, corporations, economics and capitalism. Even after reading several books, they still do not have a good grasp of these key concept which are very crucial to know if you want to become a good investor. The book discusses these topics in a so easy to read format in fact its so easy to read it that even elementary and high school students understand it.

The authors start the book by discussing Companies, what it is, public and private companies and relates it to the companies that produce the day to day goods and services that we ordinarily consume.

The next chapter tackles the basics of capitalism starting from its history, how capitalism started in the United States, the start of companies, the United States financial system, a bit about economics, the stock market and more on companies on how it is tied up to capitalism and the entire financial system as we know it today. Karl Marx and the crash of 1929 is also discussed.

After giving readers a history lesson and a low dose of economics and capitalism they turn their attention to investing proper, discussing where to invest, how to invest and other investing technical mumbo jumbo. U.S companies and how their stock prices has grown all through the years are featured through graphs and tables.

In Part III, the authors then continue discussing the lives of company from its birth to its middle age its growing old and even death for some companies. They also inject a bit of economics by simplifying key economic indicators. They wrap up the discussion in part 4 with who is rich and how they got that way by way of a litany of company listing starting from how Coke started Wrigley’s, Levis among others.

The book closes with some really useful appendices such as stock picking tools and how to decipher a balance sheet.

Overall the book is a one stop shop on learning the basics of investing, capitalism, a bit of finance, economics and accounting. It may be written simply and its concepts are very basic. But don’t underestimate it, because even if you read and master the concepts in just this one book and won’t read anything else, it will really make a difference on how you invest.

There’s another reason why I highly recommend this book. Aside from the fact that it is so easy to understand and covers comprehensively the needed investing concepts, the book was written by one of the world’s best investors. Peter Lynch managed the Magellan Fund between 1977 and 1990. He averaged a 29% return per annum, making it the best 20-year return of any mutual fund over the period. John Rothchild on the other hand is a freelance writer specializing in financial matters. He has authored or co-authored over a dozen books on finance and investing. These guys know what they are talking about ! Trust me !

I highly recommend “Learn to Earn” in fact its been in my recommended books section for a long time already. Encouraged to get a copy of the book ? Click here to get “Learn to Earn” at Amazon. Start reading and start learning to earn !

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D’ Intelligent investor is one of the first few updated value investing blogs in Asia and probably the only updated value investing blog in the Philippines where you can learn stock market investing through intelligent investing that makes business sense. The stock market investing strategies are very different from what most stock market players advocate. The strategies featured here are mainly value investing principles more specifically inclined with what are perceived to be Warren Buffett’s style of investing. Other value investing strategies by great value investors such as Benjamin Graham, Peter Lynch, John Boggle among others are also featured.