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The 25% Cash Machine: Double Digit Income Investing by Bryan Perry 224 pages This is a useful read but I find some of the risk being downplayed too much. But nevertheless, it does give you a good direction to follow. Try this on a small portfolio first. ------ extracted start ---------- Traditional income-generating investments are producing historically low returns. Banks, money market funds, and bonds are still paying rats well below the expected increase in the cost of living. If you intend on living a financially secure life, you need to generate exceptional cash flow with a portfolio of income-generating investments that will appreciate over time to produce life-changing wealth. This book analyses the ins and outs of double-digit investing and guides you through them. The strategies laid out will create a foundation for building a high-income portfolio and make it easier to manage your 25 per cent Cash Machine. Following the approach mapped out, you will build a double-digit income portfolio with the idea of eventually owning up to 25 securities. This strategy is not meant to be a trading account. We are not looking to book short-term gains in 30, 60 or 90 days - quite the opposite in fact. You should be hoping to hold each position for years to come, resulting in steady appreciation and high income. Do not expect these stocks to trade like pure growth stocks. Sure, they will move up to some degree on favourable news, but not like common stocks that retain all their earnings. However, because of the double-digit yields these stocks pay, they do not get sold down harshly on bad news. The high-dividend yield acts like a safety net, keeping the stocks trading in a very tight range but trending higher as well. We are in this game to generate a 10 to 12 per cent stream of income from dividends and interest. while getting an additional 15 per cent capital appreciation over time. This is your income protfolio, something you should build and keep for the rest of your life. You will not get 25 per cent every year, but over time, this approach will generate a 25 percent annual "total return". Some years, we will get more, some years, less. You will build a high-income portfolio of about 25 stocks. We have to manage the potential downside, and that is why I do not like to have any single position that takes up more than 5 percent of the total portfolio. A 5 percent position is large enough to allow a stock that is working well to have plenty of impact on the overall portfolio. At the same time, a 5 percent position is small enough that, if that position goes against us, it will not blow up the toal return for the whole year. Success from the 25 percent Cash Machine comes from moving your money aggressively into the right sectgors as business conditions favour them. Adapted from Bryan Perry's book, The 25% Cash Machine, published by John Wiley & Sons. -------- end of extract ---------- Get a copy of this book "The 25% Cash Machine: Double Digit Income Investing " now and learn how to earn now from your investment.
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