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Un mensaje de Garcia (A Message from Garcia)
     

Un mensaje de Garcia (A Message from Garcia)

by Charles Patrick Garcia, Jaime Escalante (Prologue by)
 

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Product Details

ISBN-13:
9781401903381
Publisher:
Hay House, Inc.
Publication date:
10/28/2003
Product dimensions:
5.84(w) x 9.06(h) x 0.75(d)

Read an Excerpt

Un Mesaje de Garcia / A Message from Garcia


By Charles Patrick Garcia

Hay House

Copyright ©2003 Charles Patrick Garcia
All right reserved.

ISBN: 140190338X

Chapter One

WHY BONDS?

The Bare Essentials

* A balanced portfolio of stocks and bonds can help most investors accomplish long-term investment goals more effectively than a pure equity strategy.

* Bonds provide solutions for two of the three most basic investment requirements: income and capital preservation.

* A bond is a security that pays a specified rate of interest for a limited amount of time and returns principal on a defined date.

Despite the diversity and breadth of today's media, the stock market inevitably dominates business news. You'd think there was nothing else to talk about. To be sure, the bond market occasionally takes center stage- usually when the Federal Reserve is about to make an announcement or when inflation concerns suddenly begin to percolate-but for the most part that's the exception, not the rule.

Of course, the motivations of news editors are easy to decipher. Much like homicides and natural disasters, the stock market simply generates better headlines than the sleepy bond market. I guess it's because all the elements of suspense are there, with quick fortunes made (and lost) more often in stocks than in bonds. Frankly, I'd be hard pressed to disagree-stocks are morenewsworthy than bonds. So I'm not going to waste your time arguing to the contrary. But consider this: after the dramatic stock market decline that began in 2000, bonds outperformed equities for three years in a row. Now that's newsworthy.

I would also contend that a balanced portfolio of stocks and bonds can help most of you accomplish long-term investment goals more effectively than a pure equity strategy. This is not an original idea. With rare exception, stocks and bonds represent the two largest components of the three main asset classes recommended by most investment firms (the other would be cash). Consequently, the question is not whether you should own stocks or bonds, but how much of your investment portfolio should be allocated to each asset class.

You see, bonds provide solutions for two of the three most basic investment requirements: Income and capital preservation. The other objective, growth, is more appropriately achieved through stock investing. That's why stocks and bonds complement each other so well. Together, your bases are covered.

But we're getting a little ahead of ourselves here. Now that you understand some of the most compelling reasons why bonds are important, let's take a step back and briefly discuss what they are. Ironically, the best way to do this is to forget about bonds for a moment and instead think about what happens when you purchase a home. A loan officer informs you that the bank would be happy to lend you money as long as you promise to repay it in 15 or 30 years. Suppose you settle on a 30-year term. That's fine, but there's one more important caveat-it'll cost you, say, 6.75 percent annual interest for the privilege. It seems fair, so you sign the loan agreement.

It's the same scenario when you purchase a bond, except you're the bank, so you're making the loan. And as the bank, you expect borrowers to repay loans by a specific date and at an agreed-upon rate of interest. That's how bonds work. In other words, as a bondholder, your purchase is effectively a loan that will be repaid after a certain length of time and, during the life of the loan, you'll be paid a fixed rate of interest. That's why bonds are also known as fixed-income securities.



Continues...


Excerpted from Un Mesaje de Garcia / A Message from Garcia by Charles Patrick Garcia Copyright ©2003 by Charles Patrick Garcia. Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

What People are Saying About This

John V. Lombarda
‘Un Mensaje de García’ de Charles García provee inspiración y lección. Lo inspirador viene de su propia historia tejida efectivamente a través del libro, la lección viene de demostrar que el éxito no es algo con que se nace, sino que se gana. García entendió esto bien. Leer el libro nos ayuda al resto de nosotros a entender bien la lección también.
Rector de University of Massachussets, en Amherst
Mark Victor Hansen
‘Un Mensaje de García’ puede ayudarte finalmente, de una vez y por todas, a encontrar en que eres bueno, que amas, que te apasiona y conducirte a una vida más satisfactoria, gratificante y plena.
coautor del bestseller # 1 en el New York Times, “Chicken Soup for the Soul”
Harvey Mackay
Cada página irrumpe con nuevas ideas y pasos concretos para ayudarte a alcanzar una vida feliz, satisfactoria y exitosa.
autor del bestseller # 1 en el New York Times, “Swim with Sharks Without Being Eaten Alive”
Richard y Linda Eyre
Primero nosotros leímos el claro y perspicaz libro de Charles y entonces se lo dimos a nuestro hijo que está finalizando sus primeros años de estudios universitarios. Le recomendamos a usted hacer lo mismo. Este libro es una estupenda guía para cualquiera en el camino hacia el éxito.
autores del bestseller # 1 en el New York Times, “Teaching Your Children Values”
Arnold Schwarzenegger
Estados Unidos es la tierra de las oportunidades. Yo llegué a este país con los bolsillos vacíos, la mente colmada de sueños y el deseo de triunfar. Yo le digo a los jóvenes todo el tiempo que si tú crees en ti mismo, tú puedes hacer cualquier cosa. Un Mensaje de García refleja maravillosamente estas y otras ideas, explicando principios del éxito en una forma alegre que te colmará de energía y emoción para soñar en grande y alcanzar tus metas.
Lionel Sosa
Las personas que luchan por el éxito están desesperadas por sabiduría. El libro de Charles García es el soporte que necesitan. ¿Quieres hacerlo en grande? Lee este libro. Cuando termines de leerlo no solamente dirás ‘Si, puedo’, dirás ‘Si, deseo’.
asesor de medios de comunicación del Presidente George W. Bush y autor del libro “The Americano Dream: How Latinos Can Achieve Success in Business and in Life”

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