Even in a time of rising rates, utility stocks have their place in a portfolio, as a form of diversi...
The 25% Cash Machine
01/01/2007 12:00 am EST
During his more than two decades of being in the trenches, helping folks manage their money, Bryan Perry has learned a thing or two about investing trends and strategies. So when I heard that he was writing a book, I knew it was sure to be filled with solid, common-sense tactics to help individual investors maximize their portfolio returns.
And I was right! The subtitle in Mr. Perryâ€™s new tome, "Double-Digit Income Investing", accurately portrays the essential theses of his book. It is a step-by-step guide to uncovering specific investment categories whose equities hold the potential to earn double-digit returnsâ€”a result of paying yields north of 10%, combined with appreciation of 15% or more.
Mr. Perry opines that in the low-income, high inflation environment of today, Wall Street continues to lead investors astray with slickly-packaged investments, erroneously-branded as "high-income", whenâ€“in truthâ€“their returns are abysmally low.
Instead, he has uncovered 15 classes of securities that meet his rigid criteria for helping investors stay well ahead of inflation.
His strategy is simple, but its uniqueness has remained hidden from retail investors only because most of them donâ€™t think the types of securities he utilizes are accessible to individual investors. They couldnâ€™t be more wrong in their assumptions.
Mr. Perryâ€™s recommended equities are not esoteric, complicated vehicles, designed only for the most sophisticated of investors. Instead, they are generally widely-available securities whose best advantages are applicable primarily to investors just like you.
Additionally, these investments are not speculativeâ€”by any means of accounting. No junk bonds or complicated covered call writing strategies are among his basket of recommendations. Rather, they are: highly-diversified, strategically-flexible, very liquid, pay huge yields, and offer significant upside appreciation with less volatility than you would find by investing in many common stocks.
And they are not meant for day- or momentum-trading. Instead, these securities are slated to be part of a long-term, focused portfolio that is gradually built and consistently monitored.
In these pages, Mr. Perry comprehensively examines some half-a-dozen investment sectors that fulfill his double-digit income goals, including Canadian Royalty Trusts, Closed-end funds, Real Estate Investment Trusts, and Master Limited Partnerships.
I was duly impressed that his analysis included information often left out when experts offer recommendations, including a thorough explanation of exactly how these businesses generate their returns, their advantages to individual investors, and howâ€”and whenâ€”to buy them. Additionally, Mr. Perry offers step-by-step instructions on just how to begin building your portfolio with these high-yield/high-return vehicles.
And although Mr. Perryâ€™s strategy is long-term, heâ€™s seen too many market and economic shifts to believe that a static portfolio will be successful forever. Therefore, the â€˜when to buyâ€™ plays an important role as he watches trends and practices sector rotationâ€”from time to timeâ€”to optimize portfolio returns.
This book offers much more than the usual â€œI made a zillion dollars, so can youâ€ strategy generally prevalent in most investment tomes. If you are looking for straight talk, good, thoroughly analyzed investment recommendations, with a detailed guide for crafting a portfolio designed to return double-digits, then this book is for you. Happy reading!
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