I just enjoyed a wonderful article in The Globe and Mail written by Larry Sarbit, CEO and Chief Investment Officer at Winnipeg-based Sarbit Advisory Services, on the topic of an “equity bond” —
An “equity bond” sounds like two different investment concepts. Bonds pay a predefined amount of money at specific times called coupons. On the maturity date of the bond, a predefined amount of money is returned to the investor. Equities, as Mr. Buffett points out, have a maturity date of infinity with varying rates of return over time. It is the nature of businesses that we don’t know exactly what their coupons will be. So, how can these two ideas be put together?
- Simple But Not Easy: Buy Stocks As You Would Cars or Groceries
- Larry Sarbit on The Real Business of Investing
Mr. Sarbit was a featured instructor at Latticework 2016 and is a proud member of The Manual of Ideas community.