O'Reilly logo

How to Double your Wealth Every 10 Years (Without Really Trying) by Nick Louth

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

5. Why Income is Crucial

IN ANY INVESTMENT the return is made up of two things: a capital gain or loss from the price change in that asset over a given period and its income, which may be reinvested.

Let’s separate those two strands. In many assets, the income is known right from the start. A government bond pays a coupon, and that is what you will get, barring the unlikely event of a sovereign default. Corporate bonds pay a coupon too, with a somewhat larger chance of default. Gold pays nothing, and neither do direct investments in other commodities. Foreign currency deposits may pay some income, but that income can vary depending on the exchange rate. Some, like company dividends or property rents may be predicted, but can fall short for ...

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