Mutual Funds

What is mutual funds?

At this point, we've come to two conclusions: First, you should invest in stocks, if at all possible, and second, you should hold on to these stocks as long as the companies behind them continue to do well. The next thing you have to decide is whether to pick your own stocks or let somebody else do it (Lynch 116).

There's a lot to be said for taking the easy out, especially if you are bored by numbers and couldn't care less what happens to Kodak's earning , or whether Nike makes a better shoe than Reebok (Lynch 116).

That's why mutual funds were invented, for people who wants to own stocks but can't bothered with the details. In a mutual fund, your only job is to send money, which gives you a certain number of shares in the fund. Your money is lumped together with a lot of other people's money (you never actually meet them but you know they are out there). The whole pile is handed over to the expert who manages the fund (Lynch 116).





What is your definition for mutual funds?

Putting Your Money to Work

Warren Buffett, America's second-richest person at present count, got there by saving money and later putting it into stocks (Lynch 96).

If you start saving and investing early enough, you'll get to the point where your money is supporting you. It's like having a rich aunt and uncle who sends you all the cash you'll need for the rest of your life, and you never even have to send a thank-you note or visit them on their birthdays (Lynch 96)

This is what most people hope for, a chance to have  financial independence where they're free to go places and do what they want, while their money stays home and goes to work. But it will never happen unless you get in the habit of saving and investing and putting aside a certain amount every month, at a young age (Lynch 96).





Who is the youngest richest person in America? (hint who is the founder of Snapchat? (the guy on the right))

Invest Now: What Are You Waiting For?

Many people wait until they are in their thirties, forties, and fifties to start saving money. It dawns on them that they;re not getting any younger, and soon enough they'll need extra cash for retirement so they can afford a cabin o the lake or a trip around the world. The trouble is, by the time they realize they ought to be investing, they've lost valuable years when stocks could have been working in their favor. Their Money could have been piling up (Lynch 92).



When and what age did you start saving money?

Who was the father of financial?

Has anyone wonder who is Alexander Hamilton and what he does?

Alexander Hamilton was the father of the financial system. that part gets lost in the history books, but without the financial system, the political system never would have worked (Lynch 35).

Hamilton realized that the country couldn't get along without money, and to have money, it needed banks. It seems obvious today, but back then, banking was a controversial subject (Lynch 36).



What was Alexander Hamilton more famous for?

What is Capitalism?

Have anyone ever wonder what is capitalism and what does it do?

Capitalism happens when people make things and sell them for money. Or if they dont make things, they provide services for money (Lynch 21).

For human history, capitalism was an alien concepts, because the bulk of the world's population never got their hands on the money.Over thousands of years, the average person lived out his or her life without buying a single item.




How does capitalism relates in the real world?

Learn to Earn

For my IRP book Learn to Earn is about how to invest and also to think like an investor. I might also start a business of my own in the future. Get to know how to invest and how to read stock table, how to understand a company annual report, and why everyone should pay attention to the stock market.