123 Book Meme: Winning Investment Strategy

I was tagged by DebtKid to participate in the 123 Book Meme.

The rules:

Pick up the nearest book (of at least 123 pages).
Open the book to page 123.
Find the fifth sentence.
Post the next three sentences.
Tag five people.

The book closest to me is The Only Guide to a Winning Investment Strategy You’ll Ever Need by Larry Swedroe. I reviewed the first part of this book in January, and will be reviewing the remaining two parts of this book shortly. If you are interested in hearing more about Larry, he writes monthly “Ask The Expert” columns for me, and I wrote a review of his other book, Wise Investing Made Simple.

Here’s what we find on page 123:

Investors considering inflation-protected securities should evaluate the decision on which is the preferred vehicle based on current yields, their current tax situation, their ability to hold to maturity, their ability to accept principal risk, and whether the investment is for their taxable or tax deferred account. These investments should also be compared to the yields on alternative short-term fixed-income securities. With the preceding information, we can now determine the winning strategy for the fixed-income portion of our portfolio.

Wow, these are three information-packed sentences. My original intention was to elaborate on them, unfortunately, fixed-income is one of my weaknesses. I guess, I better pay extra careful attention when I get to this section of the book.

Now, I am going to tag:

Have a great Daytona 500 Sunday — it’s the 50th running! Go Junior!

3 Comments

FourPillars
February 17, 2008, 13:45

Thanks for the link and tag. Make sure you check out my response!
Mike
7million7years
February 19, 2008, 10:29

What’s in a meme? Apparently, everything …
There’s a great book that talks about an interesting ‘Fixed Income’ retirement strategy, coincidentally based upon the fixed-income, inflation-protected securities that your meme talks about!
The book is called Worry Free Investing by a very highly-regarded academic, Zvi Bodie. His investment strategy relies almost 100% on Treasury Inflation-Protected Securities (TIPS) – although, if you are investing OUTSIDE of a tac-shelter (eg IRA) then you may need to switch to inflation-protected Municipal Bonds (MUNI’s).
Make Friends, Earn Money
April 6, 2008, 8:28

This is really quite funny, soryr I’ve only just got round to reading it. I’ve got an even better one for you. Take one of your books and write in the front cover, “This book has been placed here for anyone to read, please read it and then leave it in a public place for someone else to pick up.” Leave an email address (it can just be a hotmail or yahoo one that you can discard if required. Ask the person to contact you when their read it with their Nationality and City of Origin. I did this last year after leaving a book in a train station in the UK, near to where I live. I had three emails, two were from UK residents in the south of the country and one was from China! It was great fun!