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repository for anything up to the first £100.
As soon as the deposits reach that figure they
should be taken out and invested in one stock.
This process should be repeated with the next
hundred, only the second stock chosen must be
under a different market and trade influence
from the first. We deal with the best selection
of countries for this purpose in the third
of these sub-divisions, of which this is the
first. With the third hundred a third stock
should be bought, and so on up to £500.
(Until the invested capital is protected by at
least three different market influences, capital
safety has not been arrived at. For this
reason we would recommend that the first
stocks bought be most carefully examined as to
capital stability). After £500, the number of
stocks to be invested in will largely depend
upon the objects desired by the investor, as
outlined in the early part of this chapter. For
ordinary purposes, where a substantial income
with good capital stability is desired, we
have found, in our experience, that capital is
best divided up in the following pro
portions :—
From £500 up to £1,000 capital, 5-6 stocks of equal value.
„ £1,000 „ £2,000 „ 5-7 „
„ £2,000 „ £5,000 ,, 6-8 „
» £5,000 „ £20,000 „ 8-10 „
For larger sums 10-30 stocks of equal value.