92

with  the  directions  given  in  the  examples  set
out  in  the  early  part  of  this  chapter,  then  more
divisions  become  necessary.
The  number  of  geographical  divisions
amongst  which  an  investor  decides  to  distribute
his  Capital  should  always  increase  in  direct
ratio  with  the  Income-Yield  worked  for.  In
an  Investment  List  constructed  to  yield  an
income  of  4  per  cent,  the  minimum  number
of  stocks  and  of  geographical  divisions  will
suffice.  But,  when  the  investor  requires  a  yield
of  5  or  6  per  cent,  from  his  capital,  and  consequently ­
  purchases  stocks  of  a  more  speculative ­
  type,  Capital  Distribution  should  be  made
as  wide  as  the  amount  of  capital  will  permit.
This,  of  course,  applies  also  where  the  selected
stocks  are  desired  to  show  large  fluctuations.
If  the  reader  will  again  refer  to  the  map
of  the  world  we  will  lead  him  on  to  further
countries  in  their  natural  succession.  In  order
to  show  clearly  the  motive  for  our  selection,
and  to  aid  the  reader  when  we  come  to  the
question  of  realising  investments,  we  would  ask
him  to  provide  himself  with  a  few  pins  to  represent ­
  stocks  and  to  fix  first  of  all  five  of  them
into  the  divisions  already  selected,  thus  :—One
in  the  spot  denoting  London,  one  in  the  spot
denoting  San  Francisco,  one  in  Tokio,  one
in  Cape  Town,  and  one  in  Melbourne,  and  a