Full text: Investment, an exact science

85 
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.
	        
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