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  proportions ­
  :—
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.