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other  ;  so  that  the  depreciation  of  a  large  block
of  stock  cannot  possibly  be  counterbalanced
by  an  equal  appreciation  in  a  small  holding  ;
and,  in  addition  to  this,  the  external  risks
which  dominate  these  indiscriminate  purchases
are  entirely  disregarded.
Besides  this,  some  investors  buy  thirty
different  securities  where  six  well-selected
stocks  would  have  sufficed  ;  whilst  others
purchase  five  stocks  where  at  least  ten
would  have  been  necessary  for  a  proper  distribution ­
  of  risks.
The  commonest  and  most  disastrous  idea
which  seems  to  prevail  among  investors  is  that
it  is  only  necessary  to  consider  the  pros  and
cons  of  every  stock  separately,  and  that  if
each  stock  held  is  internally  safe  the  total
result  must  be  satisfactory.
We  have  now  fully  explained  to  our
readers  the  fallacy  of  this  argument,  and  have,
we  hope,  made  clear  to  them  the  disastrous
consequences  which  these  popular  mistakes
entail.  So  that  by  this  time  our  readers
should  be  in  a  position  to  lay  their  lingers
upon  the  precise  cause  of  every  financial  loss
which  they  may  have  sustained  in  the  past.
To  reconstruct  to  the  best  advantage
existing  ill-assorted  Investment  Lists  is  by
no  means  an  easy  task.  We  give  in  How  to