Safeguarding Invested Capital. 17
stock, the total cost and present value ol all the stocks
held, the yield afforded by each, and the total income
produced are also ascertained and recorded.
An analysis of this kind discloses the total present
realisable value of the whole list of investments—
how the capital is distributed among the various stocks
held—how much capital has been invested in each
geographical area, the total income produced by the
investments during tlfe financial year prior to the
analysis, and the average yield, calculated on present
values, returned by each stock. Lastly, it reveals
whether, and to what extent, the investor has gained
or lost capital in the past, and which stocks have dis
played increases or decreases in capital value.
The next step in the investigation is to ascertain the
quality of the investments. When this has been done
and the different qualities of stocks in the investor’s
list have been separated and arranged under their
respective categories, a comparison is instituted between
them and the best stocks of each similar kind available.
One department of the Registry’s staff is solely
engaged in testing the respective merits of all the
stocks known throughout the world, and thus, by a
process of elimination, maintaining an up-to-date list of
the best stocks of every quality.
By the before-mentioned comparison of such stocks
with the securities of a similar kind held by the investor,
the Registry can at once ascertain and show whether,
and to what extent, the investor has been wise in his
selection in the past.
D