O'Reilly logo

Get Started in Shares by Glen Arnold

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Comparing the returns on other investments

Also shown in Figure 1.7 are the returns on bonds issued by these governments as they borrow from investors to make up for shortfalls in tax revenues. A bond is a simple way for an organisation to borrow money. Thus a government or company could sell a piece of paper which promises the owner a payment at the end of, say, 10 years as well as a series of interest payments at annual or six- month intervals.

Notice that in all the cases shown in Figure 1.7 you would have been better off invested in shares over the long run. The extra return on shares above government bonds is generally between 3% and 6% per year (over a century or so).

Another alternative investment is to place money in building society ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required