100 
other ; so that the depreciation of a large block 
of stock cannot possibly be counterbalanced 
by an equal appreciation in a small holding ; 
and, in addition to this, the external risks 
which dominate these indiscriminate purchases 
are entirely disregarded. 
Besides this, some investors buy thirty 
different securities where six well-selected 
stocks would have sufficed ; whilst others 
purchase five stocks where at least ten 
would have been necessary for a proper distri 
bution of risks. 
The commonest and most disastrous idea 
which seems to prevail among investors is that 
it is only necessary to consider the pros and 
cons of every stock separately, and that if 
each stock held is internally safe the total 
result must be satisfactory. 
We have now fully explained to our 
readers the fallacy of this argument, and have, 
we hope, made clear to them the disastrous 
consequences which these popular mistakes 
entail. So that by this time our readers 
should be in a position to lay their lingers 
upon the precise cause of every financial loss 
which they may have sustained in the past. 
To reconstruct to the best advantage 
existing ill-assorted Investment Lists is by 
no means an easy task. We give in How to