the scale towards 
1 
CONCLUSION 
417 
loney on deposit in a bank for two or three 
at a low rate of interest. Nevertheless, the 
Jvay to have money with which to buy during 
|ic is to sell out when stocks are high and to 
this money in liquid form for two or three 
until this panic comes. Of course, it need 
*i:’ll be kept on deposit in banks, but much of it 
J>e invested in short-term notes, commercial 
etc. In making such investments, however, 
K the period of prosperity while waiting for 
pc, the investor should give no attention to 
**■ but purchase only the highest grade short- 
notes and the highest grade commercial 
■ which can be liquidated or sold at any time 
! .t loss. Nine-tenths of the losses which 
to investors are due to their desire for too 
rate of interest, and this is a special tempta- 
pr the man who is endeavoring to take ad- 
*^“ge of the long swings. He hates to let the 
y lie idle and uninvested for two or three 
waiting for a panic. Nevertheless, this is 
lly way to play the game successfully. In 
J 'to have money to invest during a panic, one 
liquidate months, or perhaps years, in 
ce. 
chapter represents the honest conviction of 
thor on investing money, although he is well 
that it is not an acceptable doctrine to bond 
and brokers who are dependent on a con- 
business from day to day and from month 
- ith.