The Intelligent investor by Benjamin Graham | Episode 1 |
The Audiobooks Podcast
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Investing in High-Grade Bonds
Toward the end of 1971 it was possible to obtain 8% taxable interest on good medium-term corporate bonds. The Dow Jones Industrial Average at its recurrent price level of 991 yields only 3.5%. If there is no serious adverse change, the defensive investor should be able to count on an average annual appreciation of about 4%. As we shall explain later this appreciation is based essentially on the reinvestment by the very house companies of a corresponding amount annually out of undistributed profits.
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