Today I just made an important addition to my income investing site - I launched by sales letter for the book YES, YOU CAN BE A SUCCESSFUL INCOME INVESTOR! by Ben Stein and Phil DeMuth.
It's a good book, the one which opened my eyes to the absurdity of throwing money at common stocks in the hopes of capturing capital gains in the future, which you can't profit from without selling the stock and losing future.
In the near future I will finish my own book on income investing, but in the mean time you can read about Stein and DeMuth's here:
Income Investing for Baby Boomer Retirement
income investing book
income investing book
Wednesday, July 4, 2007
Preferred Stock Investing -- good book
I've finished reading PREFERRED STOCK INVESTING by Doug K Le Du and I'm quite impressed.
While I've been (justifiably) writing about the temporary, unpredictable nature of capital gains of common stocks, this guy has been looking at preferred stocks -- and figured out a system to capture the capital gains that many preferred stocks have, particularly during periods that interest rates are decreasing.
To reinforce his point that this system is very safe, he continually contrasts it with the benefits of certificates of deposit, but finds that he can usually get a total return more than 3 times that of a CD. He claims that the risk is the same. I'd say that's not true -- but it's true that the risk of high quality preferred stocks is low. He has criteria for screening out the risky ones.
If you work his system for enough years, you may eventually lose some money to a company that goes out of business, but it'll be rare. In the meantime, you can make a lot more money than with a certificate of deposit.
This book is a lead generator for his email notification service, which charges you for the information to work the system. However, he's fair - the book gives enough information to work the system yourself. But it'll take some time and trouble and paying fees to some websites, so it's probably cheaper to let him do the work for you if you're going to commit to making money this way. The price of this service may change, but it's quite reasonable - a lot less than I expected, in fact. I pay more a month for my Internet access.
And the worst that can happen is -- you collect quarterly dividend checks that are probably 3 times higher than the interest a CD would be paying you.
preferred stock investing
preferred stock investing
While I've been (justifiably) writing about the temporary, unpredictable nature of capital gains of common stocks, this guy has been looking at preferred stocks -- and figured out a system to capture the capital gains that many preferred stocks have, particularly during periods that interest rates are decreasing.
To reinforce his point that this system is very safe, he continually contrasts it with the benefits of certificates of deposit, but finds that he can usually get a total return more than 3 times that of a CD. He claims that the risk is the same. I'd say that's not true -- but it's true that the risk of high quality preferred stocks is low. He has criteria for screening out the risky ones.
If you work his system for enough years, you may eventually lose some money to a company that goes out of business, but it'll be rare. In the meantime, you can make a lot more money than with a certificate of deposit.
This book is a lead generator for his email notification service, which charges you for the information to work the system. However, he's fair - the book gives enough information to work the system yourself. But it'll take some time and trouble and paying fees to some websites, so it's probably cheaper to let him do the work for you if you're going to commit to making money this way. The price of this service may change, but it's quite reasonable - a lot less than I expected, in fact. I pay more a month for my Internet access.
And the worst that can happen is -- you collect quarterly dividend checks that are probably 3 times higher than the interest a CD would be paying you.
preferred stock investing
preferred stock investing
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