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unsatisfactory may, by careful selection and 
attention, be reduced to a minimum, but so 
long as the world continues it will be necessary 
to reckon upon a certain amount of disappoint 
ment in every effort made to precisely calculate 
the future. This being the case, it is clear that 
if an investor is to preserve his Capital intact, 
he must form a Reserve Fund to provide for 
the contingency of disappointment. 
On examining any of the Geographically 
Distributed Charts given in this book, it 
will be seen that many handsome profits 
which are at one time displayed by in 
dividual investments are swept away again 
later on by the inexorable tidal movement of 
Stock Exchange values. 
The constant recurrence of this phenomenon 
will naturally lead the investor to enquire 
whether it is absolutely essential to the scheme 
of Geographical Distribution that a handsome 
accrued profit should never be converted into 
cash, but should be thus left at the mercy of the 
backward movement, which the charts will have 
convinced him is certain to ensue. 
The answer to this enquiry is that the rises 
which occur should be utilised for forming a 
Reserve Fund ; and, with a Geographically Dis 
tributed Investment List, it is always possible 
to realise accrued profits without disturbing