Chapter 1. Introduction

“Give a person a fish and you have fed him for a day. Teach him to fish and you have fed him for life.”

Chinese proverb (Lao Tzu)

In the wake of the worst financial crisis since the Great Depression, many investors are wondering how they can get attractive returns while still being able to sleep at night. This book shows you how, using investments that generate income.

You might ask what this means. Isn’t the goal of all investments to generate income? Actually, there are two ways you can profit in the financial markets. One way is to buy low and sell higher (hopefully), thereby generating capital gains. The allure of investing in search of capital gains is that when you are successful, the profits can be very large. ...

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