Investment, an exact science

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Monograph

Identifikator:: 865521182

URN:: urn:nbn:de:zbw-retromon-48767

Document type:: Monograph

Author:: Lowenfeld, Henry

Title:: Investment, an exact science

Place of publication:: London

Publisher:: The Financial Review of Reviews

Year of publication:: 1906

Scope:: 1 Online-Ressource (X, 160 Seiten)

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter I - On investment risks

Collection:: Economics Books

8 In such a case as the above the investor would simply sell his holding of stocks and re-invest again on the same easy and safe basis from which he started. His position would have remained unchanged, and his unimpaired £10,000 can nearly always be made to yield per cent., or £450, with safety. In fact, investment lists, whose income yield is less than 4|- per cent., can, save under excep tional conditions, always be brought np to a 4^ per cent, basis without disturbing their capital safety ; indeed, in many cases the capital safety can be increased. But, supposing that both capital and income had dropped 20 per cent., and the realisable value of the stocks held had fallen to £8,000 and the income to £360, then the case would be serious indeed. To produce £450 per annum on £8,000 necessitates an investment which yields over per cent., and to make up the capital to its original amount means dispensing with income entirely for a period of four years ; both of which are unsatisfactory contingencies. The position which we have here illustrated has recently arisen in the case of some of the finest British investments, as many of our readers are unfortunately aware by their own actual experience ; we will therefore not

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