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Many  investors  indulge  in  some  small
speculative  transactions,  or  hold,  for  personal
reasons,  small  interests  in  some  particular
enterprises.  These  minor  holdings  form  no
part  of  the  real  Investment  Scheme  ;  they
should  be  treated  like  a  petty  cash  account  ;
otherwise  these  extraneous  holdings  will
obscure  the  results  which  the  Investment  List
is  producing,  and  impede  its  proper  working.
Investors  derive  no  benefit  from  holding
two  or  more  stocks  which  are  subject  to
the  same  Trade  Influences.  Every  additional
stock  held  entails  additional  labour  in  supervising ­
  its  progress,  and  as  it  is  futile  to
create  additional  work  which  can  be  productive ­
  of  no  beneficial  results,  the  number  of
stocks  held  should  be  reduced  to  as  low  a
point  as  is  compatible  with  adequate  Geographical ­
  Distribution.
2—  The  Quality  of  the  Stocks  held.  As  to
the  quality  of  the  stocks,  which  an  investor
elects  to  buy,  he  must  be  guided  by  his  own
Income  Requirements.
Investors  who  are  content  with  a  yield
of  4  per  cent,  or  under  should  make  their
selection  among  high-grade  securities,  similar
to  those  which  in  British  stocks  rank
immediately  behind  the  gilt-edged  group.
Those  who  desire  a  yield  of  from  4  to  5  per