25. What is Income Investing

Share it with your friends Like

Thanks! Share it with your friends!


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 the importance of Income Investing. By employing the techniques of income investing, one can prepare themselves properly for retirement. Since income investing is the process of picking stable stocks and bonds that pay decent dividends and coupons, the investor can benefit from the cash flow that’s produced by these securities.

The first way income investing provides benefits to the investor is through liquidity. Since the investor will continually receive dividends or coupons, they then have the opportunity to reinvest that cash flow into the most undervalued asset each month. This compounding cash flow is truly the essence of investing like Warren Buffett. With an ever increasing cash flow, investors can take advantage of market conditions during spikes and valleys.

The second way income investing provides benefits to the investor is during retirement. Since most retirees may need to sell their investments in order to pay their monthly lifestyle expenses, income investing offers an alternative approach. Since the retiree will receive quarterly and semi annual payments from these types of investments, they will continue to have a steady cash flow to meet their lifestyle expenses. Although some retirees may need to pull from the principal, income investing will minimize that withdrawal.

In the end, Income Investing creates more cash flow for the individual employing the technique. It’s Warren Buffett’s opinion that purchasing dividend paying stocks is a very wise decision because of the continued and consistent cash flow that provides liquidity to reinvest your earnings.


Darryl Lobo says:

This is a great channel. Just commenting to thank you man, this stuff is
awesome! Surprised more people aren’t watching this.

TruthWil says:

You’d be broke by 80…Good thing the average lifespan is 79!

Manny onsase says:

thank you. God bless you

JaeS Tan says:

hello sir… been watching your vids and have been a huge help. just wanted
to ask if there is a part 26?

OTownBoss407 says:

Make 16% on your deposits at TDAmeritrade by investing in ORC (Orchid
Island Capital) or RSO (Resource Capital)!

Open your TDAmeritrade account at

givemetoast says:

Do we have to pay capital gains taxes on dividends that are reinvested? 

b davis says:


getmirkedbitch says:

think of it like coins. .28 is 26 cents. And .5 is 50 cents. 5 cents would
be .05 because it is 5/100. one decimal place is 10ths and two decimal
places is 100th and so on.

yan7190 says:

im watching all your videos. its very helpful since im only gonna start
investing. thanks!

Preston Pysh says:

Kevin, a dividend is simply a payment that a company provides to it’s
owners. Most company’s pay a dividend 4 times a year. If you own shares of
a company, then you’re an owner.

rist98 says:

0.28 is lower than 0.5..

Preston Pysh says:

Yan, you can look on msn money (or any stock ticker platform) and there’s a
location where it says “Dividends Rate”. If nothing is listed, then the
company doesn’t pay one. If it does pay one, you’ll also see a tab for
“Dividend yield”. This is nothing more that the dividend rate divided by
the market price. I hope that helps

kevin chirles says:

I still don’t understand what dividends are?

shree shetty says:

thats perfect. penny stocks have been booming in past 2 years and thats the
great way to make money from trading fast. dont think its funny, One of my
friend making tons of money from penny stocks with professional easy
guidance. have a try and make the most of them :) => bit.ly/13C68Bi?=itusce

Preston Pysh says:

mendacium, I’m not sure how to answer your question….by .22?

andrej13mkd says:

I looked at this movie since I am finding a lot Online earning techniques
Than I found PayMeTQM. Money does not issue to myself I am having more than
2800$ in a 30 days. PayMeTQM one and only super technique to earn online. I
would suggest you PayMeTQM just google PayMeTQM.

Soni Bros says:

Preston, I know I have already mentioned this, but damn! Your videos are
great. Realistic example, realistic and exceptional results, all done by
following a value strategy. Although my videos are presented in a different
style, I hope one day they will be up to par with your videos when it comes
to quality. Keep it up Preston.

Preston Pysh says:

Thanks Yan7190

Preston Pysh says:

MrSonibros, I really appreciate the compliment! It really means a lot. Keep
up the great work with your channel. It’s impact is definitely helping
people with their approach!

yan7190 says:

how can i define companies that pay dividends from those who dont? thanks!

abhay dixit says:

How to make Money with CJ or clickbank: 1. Get a CJ or clickbank Affiliate
link 2. Get an advertiser account with BreezeAds(dot)com – its great and
super cheap ppc network!!! 3. set up daily budget of $50 a day will bring
you thousands clicks and at least 10-15 sales a day x 20 ~ $400-$700 so
investing $50 will make you $1000 – as simple as that!

Matthew Fredson says:

You guys should check out this EXTRAORDINARY website called FIREPA.COM .
You can make money online and start working from home today as I am! I am
making over $3,000+ per month at FIREPA.COM ! Visit Firepa.com and check it
out! The unusual adjustment individualizes the behavior. The change
encourages the development. The space boughts the approval.

I just want to say I am newbie to blogging and site-building and definitely liked this web blog. Most likely I’m going to bookmark your site . You actually have beneficial well written articles. Cheers for revealing your website page.

Comments are disabled for this post.