Einführung in die Volkswirtschaftslehre

Investment, an exact science

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Monograph

Identifikator:: 1024891038

URN:: urn:nbn:de:zbw-retromon-59598

Document type:: Monograph

Author:: Wygodzinski, Willy http://d-nb.info/gnd/117348171

Title:: Einführung in die Volkswirtschaftslehre

Edition:: Dritte, durchgearbeitete Auflage

Place of publication:: Leipzig

Publisher:: Verlag von Quelle & Meyer

Year of publication:: 1920

Scope:: 1 Online-Ressource (149 Seiten)

Collection:: Economics Books

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10 profit of £10 over the second. He would thus he £30 out of pocket over the joint transac tions, and his capital distribution would have failed in its object. Whereas, if he had invested £500 in each stock, then the loss on the first stock would have been counter balanced by the profit on the second, and his capital distribution would have proved its practical utility. Of course, the point might be raised that supposing the respective movements of the two stocks had been exactly reversed, and the £800 investment had risen and the £200 investment had fallen, in such a case the very irregularity of the distribution would have contributed to an increase of profit. But this result of an unsound investment policy in no way disproves the fact that unsound investment policies invariably result in a final catastrophe. Unequal investment of this nature, where the result is left to chance, is nothing more than speculation. In fact, a pur chase of securities as in the illustration given above is not an investment at all ; as far as £600 of it is concerned, it is a speculative risk against which no provision has been made. The main object of sound investment is to safeguard capital against loss, and this object can only be attained by a refusal to jeopardise

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