Investing in Bonds by David Scott
Investing in Bonds by David Scott
Stocks are a very popular investment choice, but it’s not the only one. In fact, you shouldn’t invest all of your money in stocks, but diversify. A great way to do this is to also invest in bonds.
As with any type of investment, I knew that I needed to teach myself about bonds, and when searching for some good reading material, I came across Investing in Bonds by David Scott. It is a thorough read giving a lot of good information about bonds.
The book begins with the fundamentals including why organizations issue bonds, what bonds represent, and different features of bonds. The different features of bonds such as coupon rate can be confusing and I found this book cleared it up for me well. Here it also discusses the downside of bonds and how they compare to stocks.
It then goes into the specifics of bonds including corporate bonds, U.S. Government bonds, and municipal bonds. It goes into a lot of good detail about the background of these types of bonds.
The rest of the book goes into more in depth information and specifics of bonds. They even have a whole chapter about the risks of investing in bonds. I think this is an important chapter to read because people often think that bonds are safe and that they can’t lose money like they can in stocks. The last chapter gives sources of information about bonds.
This is not necessarily a fun read. It’s not full of jokes and stories, but is short and to the point enough that they wouldn’t be necessary. There aren’t too many books about bonds and only bonds that give you all the information you will need, but this does. It is also a good book to keep for reference later on when you get further into bond investments. It is also nicely priced.
