The Income Factory: An Investor’s Guide to Consistent Lifetime Returns
Acknowledgments
Introduction: Wealth Without the Drama
1 How to Use This Book
2 Why Do We Invest? What Makes Us Wealthy?
3 How Mr. Market Captures Value
4 Income Factory: The Math, the Risks, and the Choices
5 What Sort of Income Factory Is Right for You?
6 Building Our Factory
7 Income Factory Model Portfolios
8 “Stretching” for Yield
9 Variations on the Theme
10 The Taxonomy of Risk and Reward
11 Bonds, Interest Rates, and Credit Risk
12 Senior Loans (High-Yield Bonds with Benefits)
13 Virtual Banks (aka “CLOs”)
14 From Benjamin Graham to the Income Factory
Appendix: Financial Innovation—A Case Study
Index
The proven, all-weather investing strategy that delivers long-term, consistent returns
The most common investing approach today—one that values “growth” over all else— can be ineffective and counterproductive for many investors, not to mention needlessly stressful.
Now, one of Seeking Alpha’s most popular writers, Steven Bavaria, provides a groundbreaking alternative that will see you through all markets—up, down, and sideways. The Income Factory shows how to build an income stream that increases solidly and consistently—a result of re-investing and compounding the dividends. And the best part? This income stream actually grows faster during market downturns than during flat or rising market periods.
The Income Factory sheds light on:
• Why “high-yield” doesn’t have to mean “high-risk”
• How credit investments perform more predictably than equity investments
• Why “junk” is a misnomer—and why high-yield debt is safer than most of the stocks investors own
• How to grow your wealth steadily without following the markets obsessively
Through Bavaria’s strategy, cash income increases year after year at a predictable rate. For example, a 9% yielding portfolio doubles and re-doubles every 8 years. If you’re in for the long haul, an Income Factory lets you achieve your goals and still sleep well at night.
Investing does not have to be about picking specific horses and hoping they win the race. An Income Factory achieves its goals by essentially betting on horses to make it around the track and finish the race.
Those are easier bets to win, and they don’t require us to be glued to the financial news 24/7.