Learn To Earn
Learn To Earn: Book Review
Peter Lynch and his co-author John Rothchild, famous fund managers in the United States with decades of money management experience, have come together to bring a series of books on becoming a better stock picker. The first is Learn To Earn.
Learn to Earn is the guide, or should I say, foundational text to get the overall picture of what the market is all about and how it all began. This book serves the purpose of making people understand the history of how the stock market has performed over the years alongside its competitors.
Additionally, some sections in the book explaining the reason behind the stock fluctuations and how to identify them are particularly noteworthy. If you are already familiar with the work and operation of these things, then I feel you can skip this book and pick the next book in the series, Beating the Street.
People who already have some nitty gritty knowledge, you’ll find this book slightly dull as it fails to offer anything practical skillset you can adopt. Moreover, the first chapter, named A Short Story on Capitalism, is 79 pages long!!
Keeping aside these observations, Learn to Earn illustrates clearly how the stock market is no casino but a money-making source. All it takes is a little common sense and a mathematical inclination to read the numbers.
All those naysayers who say nothing but ill about the stock market are the ones who have lost their money without following the fundamentals and discourage others make a fortune for themselves. If you are inclined to enter the stock market, you must know that it is necessary to sharpen your knowledge.
So reading books by successful people allows you to understand how to think and what to look for when finding the right stock. And these types of questions can make you millions if you get in the habit of asking the right questions. Remember to pick up the next book in the series, Beating The Street, to increase your knowledge.
Learn To Earn: Book Summary in 3 sentences
- Investing is crucial. The early you begin, the better.
- The prices of stock are tied to the performance of the company.
- Stocks are the best asset that can generate huge wealth.
Who Should Read It?
People who are beginning to learn about the stock market are the best audience for this book. Understanding the history and about the thought process contributes in the development.
Top 3 Quotes
- “Find something you enjoy doing and give it everything you’ve got, and the money will take care of itself.”
- “A person who owns property and has a stake in the enterprise is likely to work harder and feel happier and do a better job than a person who doesn’t”
- Debt is saving in reverse. The more it builds up, the worse off you are.
I’ve compiled notes on some of the key topics in the book which can give you a better overview of the content you’re going to find in Learn To Earn.
Learn To Earn Notes
1. The Basics Of Investing 🤑
- People wait until they are in thirties, forties and fifties to start saving money. Instead, they spend as if there’s no tomorrow.
- One of the best way to secure the future is keeping aside a portion of your earning and keep investing in it those assets that generate money itself.
- You can invest in
- Pick a field where you can replicate your methods many times over to increase the money.
2. The Lives of A Company 🏭
- The stock price of every company is associated with the performance of the company.
- It is in the favour of the management to keep performing as they themselves own the large chunk of the business and without good performance there stocks are not worth more.
- Companies especially private companies are the driving force for the nation. They create jobs, taxes and many developing contribution to the nation.
3. The Invisible Hand ✋
- The invisible hand always balances itself by removing the jobs from the unproductive section of the market towards the productive.
- It filters out the non performers in the capital market.