CHAPTER III 
SUGGESTIONS FOR INVESTORS 
Fundamental Principles 
T HREE fundamental principles which have 
served as the foundation for the building 
of America’s greatest fortunes may be 
emphasized here, but before discussing these, the 
four distinct forms of “investing” which exist in 
every community today should be understood.’ 
To Which Class Do You Belong? 
(1) Those who buy stocks on a margin today 
with the idea of selling them again within a few days 
at a profit. Why these men buy and why they 
sell is beyond human knowledge. They know very 
little about the properties; they know practically 
nothing about the technical condition of the market; 
and they are absolutely void of any knowledge of 
fundamental conditions. In most cases, they 
simply have a sort of mania for trading in stocks, 
and consequently buy and sell practically with 
their eyes shut and depending solely upon chance. 
All of these men can be classified as gamblers, 
although this class includes a very large number of 
people. Sufficient it is to say that, generally speak 
ing, not a person has ever followed this trading for 
any length of time and made money; while the 
names of hundreds can be obtained whom such a 
habit has ruined financially, physically, and morally. 
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