PREFERRED STOCK INVESTING

After four years of research, Doug K. Le Du, an investment researcher, has answered that question, and has written it down, in plain English for non-experts, in Preferred Stock Investing.

Let's face it. Bank Certificates of Deposit (CDs) and bonds are low-risk, but you just can't make any real money investing in them. By the time you subtract out income taxes and inflation, you're not left with much (if anything).

To offset the loss to income taxes and inflation, we need a simple investment method that earns several times what CDs or bonds pay, but at "CD-like" risk.

Preferred Stock Investing is based on extensive research to identify the highest quality, lowest risk preferred stocks - "CDx3 Preferred Stocks." Only about 10% of the preferred stocks trading on the market today qualify as CDx3 Preferred Stocks.

And look at the results:

* 14.5% is the average effective annual return earned by all CDx3 Preferred Stocks, issued since January 2001, using the investment method described in Preferred Stock Investing - the "CDx3 Income Engine."

* 97.5% is the percentage of CDx3 Preferred Stocks, issued since January 2001, that reached or exceeded their "Target Sell Price" on the exact date that the CDx3 Income Engine said they should (and they are all listed in Preferred Stock Investing).

* 5.6 is the number of times more money that you would have earned by using the CDx3 Income Engine investment method, rather than average bank CDs, since January 2001.

Preferred Stock Investing is great for IRA investors or as a much better alternative to bank Certificates of Deposit or bonds.

Also, through the book's website, readers of Preferred Stock Investing are supported by a wealth of continuously updated resources, including a free monthly newsletter where Doug K. Le Du, author of Preferred Stock Investing, provides all kinds of tips and answers to reader's questions.

Chapter 9 of Preferred Stock Investing shows you all of the actual investment results from every qualifying preferred stock issued since January 2001. As a reader of Preferred Stock Investing, you are entitled to free, ongoing updates to Chapter 9 (the book provides a special email address for you to use). Preferred Stock Investing is never "out of date."

Preferred Stock Investing teaches you what you need to know to be a very successful "CDx3 Investor," and it takes no more of your time than reading a monthly bank statement.

Optionally, there is also a "CDx3 Notification Service" where the service does the work for you, and just emails you whenever there is a buying or selling opportunity - weeks in advance. They do the research and calculations, you make the decisions.

Learn how to earn several times what bank CDs or bonds can make for you, at "CD-like" risk, by reading Preferred Stock Investing.

---

All Customer Reviews
Average Customer Review:
1 of 1 people found the following review helpful:

a great investing book for anyone interested in preferred stocks, 2008-07-14
This is a great book for many reasons. Personally, I bought it mainly because it discussed preferred stocks (which there tends a great lack of information on). Throughout the book you will learn (in layman terms)what makes preferred stocks tick. The author discusses why companies issue them, why they call them, and when and how they are allowed to do so.

Much to my suprise, once you understand this, you will be stunned to learn the predictable nature of preferred stocks. This is where the author describes his "income engine." Of course, as with any investing strategy, there are risks involved. The author seems to understand this better than anyone. Through a rigorous selection criteria (which he does for you!), he narrows down the hundreds of preferred stocks to ones that have the least risk. Furthermore, to reduce risk -- a key component of the "income engine," the author teaches you about diversifying your portfolio.

This is not a get rich quick trading scheme, which I believe adds to its credibility. This is geared towards investors with a longer term horizon looking to generate some stable, consistent and predictable income. If that fits your profile, buy this book.


1 of 1 people found the following review helpful:

Excellent book on a little known area of the investment world, 2008-05-08
I picked up Doug Le Du's book to learn about preferred stock investing...an area of the investing world that is not well understood, in my opinion, by the average individual investor. Specifically I was interested in diversifying my investments with instruments that provided income. The usual suspects were bonds and dividend paying stocks. Bonds have little chance for appreciation in my mind and many dividend-oriented mutual funds are heavily invested in financials which have been performing poorly recently.

That leaves preferred stocks (and maybe some other items). I stumbled across Doug's website http://www.preferredstockinvesting.com which is designed to work in tandem with his book and was hooked on how he managed to write about preferreds in an entertaining way. And it was no surprise that the book was similar.

The book is well written in concise, easily digestible chapters perfect for a quick read before bed. He covers not only the esoteric details of the myriad "types" of preferred stocks, but also how to mechanically trade them under various market conditions.

Using his methods I was able to trade profitably quickly. For instance, I was able to research the nuances of a preferred stock of a financial company whose common was under fire for poor performing subprime loans. Based on his research tips using SEC filings I was able to determine what the proceeds of the sale were being used to fund, as well as insuring my dividend was "safe", or cumulative. The yield was also very attractive. The preferred was basically safe while the common was getting its dividend slashed right and left. Since then the financial crisis appears to be abating and the preferred has risen about 15% since then. Not a bad return, and much better than the common.

Will you get rich trading preferreds? Probably not, but there is a place for these instruments in a well-diversified portfolio. If you want to learn quickly and thoroughly what a preferred stock is, what the characteristics of the most investable are, how to do your homework on an issue, and the mechanics of how to trade them...then this book is for you.


11 of 13 people found the following review helpful:

Be careful about the risk of preferred stock investing, 2008-04-28
This is a good book but reader needs to be careful about the risk
involved in preferred stock investing. Half of the purchases made
by the author in 2006 was not sold yet, and as of Apr 27, these shares
are down on average about 15% in market value. Even if you count the
9-10% in dividends that had been paid, you are probably still 5-6%
underwater. One of the purchases is CFC-B, which went from 25 to 6
at one point only to come back to 14 as of Apr 27. I am not sure
if the average reader would have the stomach to withstand this kind
of draw down. Since many preferred stocks were issued by finance
companies, I suspect purchase made by the author prior to Aug 2007
may suffer even heavier paper losses.

Reader who buy this book with the expectation of getting 12% return
with very little risk and retire needs to be realistic
I have many stock trading systems that returned on avg of 30% for 6-7
years in back testing before Aug 2007 but are down 40% since then.

I would like to see more discussion on the risk of perferred stocks,
how they would perform in bankrupcy and liquidation, etc. Readers
also should not blindly follow rating agency's ratings.

Thorburg mortgage's preferred stocks went public last year with a 10%
coupon, and the price dropped from $25 all the way below $2 and has
come back to over $4 recently. I heard that Pimco's Bill Gross
bought some of those preferred below $2. It would be interesting to
understand how he analyzed the risk of TMA's preferred and made the
call.




4 of 4 people found the following review helpful:

Well worth the time and money!, 2008-04-21
I've purchased three copies of this book: first one for me, and then after I started following the CDx3 method, one for my financial advisor, and one for my Dad. My copy is highlighted and marked with Post-Its because I don't remember everything from one reading and I like referring back from time to time. I set up my preferred stock investing system in a binder that I only need to pull off the shelf once or twice a month. For that small investment of time, I am very pleased with the results from following Doug's approach, so clearly spelled out in the book and made even easier with his subscription service doing all the legwork, so I can invest wisely while still having time for everything else. Contrary to some reviewers' remarks (did they actually read it cover to cover???), it's easy to successfully use the system described in this book without an interest rates crystal ball and even if you want to avoid issuers in certain industries, as part of a balanced investment plan. The book is educational, clear, fun, easy to read, and pays for itself many times over! Go for it!


3 of 3 people found the following review helpful:

Instructive and Practical, 2008-03-26
What I really liked about this book was that it eliminates the mystery of preferred stocks. It not only teaches what I needed to know, it provides a structured method for selecting which preferred stocks to buy and how to tell when you are best off to sell. Just from the dividend income I am earning about double what I would have with bank CDs at, to me, about the same amount of risk. The author's description of how and when to sell for a nice capital gain are the simplest and clearest that I've read. I made back many, many times the price of this book with my first preferred stock investment.

I never felt like the author was trying to sell me on anything. He presents his research in a very easy (even fun) writing style and lets you draw your own conclusions. And he shows you how to do this completely on your own if you want to.

This is a no-brainer.

Price is accurate as of the date/time indicated. Prices and product availability are subject to change. Any price displayed on the Amazon website at the time of purchase will govern the sale of this product.