CONCLUSION 
417 
his money on deposit in a bank for two or three 
years at a low rate of interest. Nevertheless, the 
only way to have money with which to buy during 
a panic is to sell out when stocks are high and to 
keep this money in liquid form for two or three 
years until this panic comes. Of course, it need 
not all be kept on deposit in banks, but much of it 
can be invested in short-term notes, commercial 
paper, etc. In making such investments, however, 
during the period of prosperity while waiting for 
a panic, the investor should give no attention to 
rate, but purchase only the highest grade short 
term notes and the highest grade commercial 
paper which can be liquidated or sold at any time 
without loss. Nine-tenths of the losses which 
occur to investors are due to their desire for too 
high a rate of interest, and this is a special tempta 
tion for the man who is endeavoring to take ad 
vantage of the long swings. He hates to let the 
money lie idle and uninvested for two or three 
years, waiting for a panic. Nevertheless, this is 
the only way to play the game successfully. In 
order to have money to invest during a panic, one 
must liquidate months, or perhaps years, in 
advance. 
This chapter represents the honest conviction of 
the author on investing money, although he is well 
aware that it is not an acceptable doctrine to bond 
houses and brokers who are dependent on a con 
stant business from day to day and from month 
to month.