Videos
Download Preston’s 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist

Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:

In this lesson, students learned how to apply the BuffettsBooks.com bond calculator. We learned that as interest rates increase, the value of a bond decreases. Similarly, when interest rates decrease, the value of a bond decreases.

When using the bond calculator, it becomes evident that the term of the security changes as it approaches the maturity. Since a premium or discount paid for a bond cannot be recuperated through coupon payments, short term bonds are less affected by changes in interest rates compared to long term bonds. This idea of changing interest rates can be taken advantage of by intelligent investors if they purchase high yielding long term bonds. In order to find a high yielding, long term bond, an investor can implement the ideas learned in lesson 3 of this unit.

Articles You May Like

Top Wall Street analysts prefer these dividend stocks for steady income
‘The choice of the people’: How Modelo and Corona maker Constellation Brands won the loyalty of Hispanic consumers in the U.S.
South Fork Wind offers a glimpse at what’s possible as offshore wind power projects struggle to gain traction
Warren Buffett’s Berkshire Hathaway hikes its SiriusXM stake to 32% after Liberty deal
Tesla’s Self-Driving Reveal Disappoints, But This Revolution Is Accelerating